Discussion

Question:

Ram purchased a flat at Rs.1 lakh and Prem purchased a plot of land worth Rs.1.1 lakh. The respective annual rates at which the prices of the flat and the plot increased were 10% and 5%. After two years they exchanged their belongings and one paid the other the difference. Then

Explanation:

After 2 years, the price of the flat will be (1)(1.10)² = Rs.1.21 lakh.
Correspondingly the price of the land will be (1.1)(1.05)² = Rs.1.21275 lakh.
Hence, the price of the plot = Rs.(1.21275 – 1.21) lakh = Rs.275 more than that of the flat.
Hence, if they exchange, Ram will have to pay this amount to Prem .

» Your doubt will be displayed only after approval.

Doubts

A said (2023-08-25 15:30:38)

i did not understood how the values are calculated of the land purchased after two years

Reply from Admin:

Value of land increases 5% every year.

∴ Value of land after 1 year = 1.1 × 1.05 lakhs.

Value of landn after 2 years = 1.1 × 1.05 × 1.05 = (1.1)(1.05)² = Rs.1.21275 lakh.

Discussion

Doubts

Feedback