Question

0. The price of DELL computer is assumed to be increased by 40% in value in the first year. 25% in the second year and 10% per annum for the next two years: each percentage is being calculated on the increasing value. What is the average percentage increase? ​

Answer 1

The average percentage increase in the price of the DELL computer is approximately 52.63%.

Step-by-step explanation:

To find the average percentage increase, we need to calculate the total increase and divide it by the number of years. Here's how:

1. First year: 40% increase ($100)
2. Second year: 25% increase ($65)
3. Third year: 10% increase ($22.75)
4. Fourth year: 10% increase ($22.75)

Now, add up all the increases: $100 + $65 + $22.75 + $22.75 = $210.5

Since we're calculating average, divide the total increase by the number of years: $210.5 / 4 = $52.625

So, the average percentage increase is approximately 52.63%.

Answer 2

The average annual percentage increase in the price of a DELL computer over a period of 4 years, with increases of 40%, 25%, and 10% for the subsequent years, amounts to approximately 27.94%.

Step-by-step explanation:

The question asks to calculate the average percentage increase in the price of a DELL computer, which has sequently increased over a period of 4 years. To find this, we need to apply the percentage increases year by year and then calculate the overall percentage increase before finding the average.

In the first year, the price increases by 40%. In the second year, it increases by 25%. For the next two years, it consistently increases by 10% per annum. To calculate the total increase after 4 years, we can assume the initial price of the computer to be 100 (as a reference value). With the consecutive increases, after the first year, the price becomes 140, after the second year, it's 175 (which is a 25% increase on 140), and so on.

The overall percentage increase can be calculated as follows:

1. Year 1: New Price = 100 * (1 + 40/100) = 140
2. Year 2: New Price = 140 * (1 + 25/100) = 175
3. Year 3: New Price = 175 * (1 + 10/100) = 192.5
4. Year 4: New Price = 192.5 * (1 + 10/100) = 211.75

The total increase over the 4 years is 211.75 - 100 = 111.75. Now to find the average annual increase, we divide this by 4, which gives us 111.75 / 4 = 27.9375%. So, the average annual percentage increase of the computer's price over the period is approximately 27.94%.