Question : The production of AB company increased by 10% after one year, and in the next year, it increased by 22%. In the third year, it increased by 5%. What overall change (in %) has been there in the production in three years from the original production?
Option 1: 41.5%
Option 2: 40.9%
Option 3: 41.2%
Option 4: 42.8%
Correct Answer: 40.9%
Solution :
Let the initial Production be 100.
The production of AB company after 1 year with a 10% increase = 110
The production of AB company after 2 years with a 22% increase = $110+\frac{22}{100}\times 110=134.2$
The production of AB company after 3 years with a 5% increase = $134.2+\frac{5}{100}\times 134.2=140.9$
Overall percentage change = $\frac{\text{Final production–Initial production}}{\text{Initial production}}\times100$
= $\frac{140.9-100}{100}\times100$
= 40.9%
Hence, the correct answer is 40.9%.
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