1. The annual production in cement industry is subject to business cycles. The production increases for two consecutive years consistently by 18% and decreases by 12% in the third year. Again in the next two years, it increases by 18% each year and decreases by 12% in the third year. Talking 2008 as the base year, what will be the approximate effect on cement production in 2012?
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By: anil on 05 May 2019 02.39 am
Let 100 be the value in 2008.
In 2009 it will become 100*1.18
In 2010 it will become 100*1.18*1.18
In 2011 it will become 100*1.18*1.18*0.88
In 2012 it will become 100*1.18*1.18*0.88*1.18 $$approx$$ 145
thus, the effect = 45%
Hence, option C is the correct answer.
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In 2009 it will become 100*1.18
In 2010 it will become 100*1.18*1.18
In 2011 it will become 100*1.18*1.18*0.88
In 2012 it will become 100*1.18*1.18*0.88*1.18 $$approx$$ 145
thus, the effect = 45%
Hence, option C is the correct answer.