Question

Messi is working as a coach in Barcelena football club. There he get 4 successive equal percentage rise in his salary. After it the sum of $100 turn into $384 and 16 cents. Find the correct options.

a) The percentage rise is above 40%.

b) The percentage rise is below 40%.

c) The percentage rise is exactly 40%.

Select the correct answer.

1. a only
2. b only
3. neither a nor c
4. c only

Answer 1

Correct Answer - Option 4 : c only

Given∶

After 4 successive equal percentage rise, The sum of $100 rise to $384.16.

Formula Used∶

Simple concept of percentage along with compound interest formula, A = P[1+R/100]ⁿ

Calculation∶

By using the formula,

A = P[1 + R/100]ⁿ

⇒

 384.16 = 100[1 + R/100]⁴

⇒ 384.16 = [1 + R/100]ⁿ

⇒

 1 + R/100 = ∜(384.16/1000)

⇒ 

1 + R/100 = 14/10

⇒ R/100 = (14/10) - 1 

⇒ 4/10

⇒ R = (4 

× 100)/10 = 40%

∴ The percentage rise is of exactly 40%.