#### The value of a property is increasing at the rate of 25% every year. By what percent will the value of the property increase after 3 years?

**Solution:**

It is given that

Original price of the property (P) = ₹ 100

Rate of increase (r) = 25% p.a.

Period (n) = 3 years

We know that

Increased value after 3 years = P (1 + r/100)^{n}

Substituting the values

= 100 (1 + 25/100)^{3}

By further calculation

= 100 × 5/4 × 5/4 × 5/4

= ₹ 3125/16

Here

Increased value = 3125/16 – 100

Taking LCM

= (3125 – 1600)/ 16

= 1525/16

So the percent increase after 3 years = 1525/16 = 95 5/16%

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