The income of a company increases 20% per annum. If its income is Rs. 2664000 in the year 2012. Then its income in the year 2010 was :

A. Rs. 2120000

B. Rs. 1850000

C. Rs. 2820000

D. Rs. 2855000

Answer: Option B

Solution(By Examveda Team)

Let the income in 2010 be P
⇒ R = 20%
⇒ Income of year 2012
⇒ Rs. 2664000
$$\eqalign{ & \Rightarrow {\text{Income of 2012}} = P{\left[ {1 + \frac{R}{{100}}} \right]^2} \cr & \Rightarrow 2664000 = P{\left[ {1 + \frac{{20}}{{100}}} \right]^2} \cr & \Rightarrow 2664000 = P \times \frac{6}{5} \times \frac{6}{5} \cr & \Rightarrow {\text{Income in 2010 = 1850000}} \cr} $$