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Verbal Ability :: Idioms and Phrases

3. The cost of two varieties of paint is Rs. 3969 per 2 kg and Rs. 1369 per 2 kg respectively. After how many years will the value of both paint be the same, if variety 1 appreciates at 26% per annum and variety 2 depreciates at 26% per annum ?

Answer: Option A

Explanation :

Simply appreciates variety 1 by 26% and depreciates variety 2 by 26% as:
3969(1?1/26)^n=1369(1+1/26)^n
For n = 2 we get both values equal.
Variety 2 Variety1
3969.00 1369 Initially
2937.06 1724.94 after I year
2173.42 2173.42 after II year
So the price become same after 2 years.

Asked In ::  Accenture  

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