Arun bought a car for Rs. 3,50,000. The next year, the price went up to Rs. 3,70,000. That was the percentage of price increase by 6%.

Answer Verified Verified
Hint- To solve this problem first calculate the change in price by subtracting initial price with final price. Then take the ratio of that changed price with the initial or original price and multiply the whole ratio by 100. That will be the final percentage increase in price.

Complete step by step solution:
Initial price of the car is Rs. 3,50,000
Final price of the car Rs. 3,70,000
Increased in price of a car from Rs. 3,50,000 to Rs. 3,70,000
Now we will calculate the change in price
Amount change is equal to
\[ = Rs.3,70,000 - Rs.3,50,000\]
\[ = Rs.20,000\]
Therefore, Increased percentage = Amount of change / Original amount ​ ×100
On putting the value of changed amount and the initial price
We get,
\[ = \dfrac{{20,000}}{{350000}} \times 100\]
\[ = 5\dfrac{{5}}{7}\% \]
Hence, the percentage of price increased is \[5\dfrac{{5}}{7}\% \]
Therefore the correct answer is that the percentage increase in the price will not be equal to 6%
So it is false.

Note: Be careful do not use the final price of the car to find the increased percentage in the price of the car.Also, when marked price is not confuse marked price with the cost cost price