Question

If a company's revenue grew by 25% in 2023 over its 2022 revenue of ₹80 lakh, and then declined by 10% in 2024, what is the revenue in 2024?

• A. ₹90 lakh
• B. ₹92 lakh
• C. ₹100 lakh
• D. ₹99 lakh

Hint:

• To calculate a percentage increase: New Value = Original Value $\times (1 + \text{Percentage Increase}/100)$.
• To calculate a percentage decrease: New Value = Original Value $\times (1 - \text{Percentage Decrease}/100)$.
• Calculate the revenue for 2023 first, then use that value to calculate the revenue for 2024.
• 25\% increase means multiplying by 1.25.
• 10\% decrease means multiplying by 0.90.

Answer 1

The Correct Option is A

Revenue in 2022 = ₹80 lakh.
Growth in 2023 = 25% over 2022 revenue.
Increase in revenue in 2023 = $25%$ of ₹80 lakh $= 0.25 \times 80 = \frac{1}{4} \times 80 = 20$ lakh.
Revenue in 2023 = Revenue in 2022 + Increase in 2023 $= ₹80 \text{ lakh} + ₹20 \text{ lakh} = ₹100 \text{ lakh}$.
Alternatively, Revenue in 2023 = $80 \times (1 + 0.25) = 80 \times 1.25 = 100$ lakh.
Decline in 2024 = 10% compared to 2023 revenue.
Decrease in revenue in 2024 = $10%$ of ₹100 lakh $= 0.10 \times 100 = 10$ lakh.
Revenue in 2024 = Revenue in 2023 - Decrease in 2024 $= ₹100 \text{ lakh} - ₹10 \text{ lakh} = ₹90 \text{ lakh}$.
Alternatively, Revenue in 2024 = $100 \times (1 - 0.10) = 100 \times 0.90 = 90$ lakh.
So, the revenue in 2024 is ₹90 lakh. \[ \boxed{₹90 \text{ lakh}} \]