Shortcut Trick
Calculate successive differences step-by-step using multiplication factors 1.2 and 1.1.
Diff 2011 = 5000 × 1.2 − 2000 × 1.1 = 6000 − 2200 = 3800
Diff 2012 = 6000 × 1.2 − 2200 × 1.1 = 7200 − 2420 = 4780
Diff 2013 = 7200 × 1.2 − 2420 × 1.1 = 8640 − 2662 = 5978
In 2013, the price difference 5978 clearly exceeds 5000.
∴ The correct answer is 2013.
Alternate Method
Given:
Initial Price of X in 2010 = ₹5000, rate of increase = 20%
Initial Price of Y in 2010 = ₹2000, rate of increase = 10%
Formula Used:
Price after n years = Initial Price × (1 + Rate/100)n
Price Difference Progression
Year
Price X
Price Y
Difference
2010
₹5000
₹2000
₹3000
2011
₹6000
₹2200
₹3800
2012
₹7200
₹2420
₹4780
2013
₹8640
₹2662
₹5978
Calculations:
⇒ In 2010: Difference = 5000 − 2000 = ₹3000
⇒ In 2011: X = 5000 × 1.2 = ₹6000, Y = 2000 × 1.1 = ₹2200
⇒ Difference in 2011 = 6000 − 2200 = ₹3800
⇒ In 2012: X = 6000 × 1.2 = ₹7200, Y = 2200 × 1.1 = ₹2420
⇒ Difference in 2012 = 7200 − 2420 = ₹4780
⇒ In 2013: X = 7200 × 1.2 = ₹8640, Y = 2420 × 1.1 = ₹2662
⇒ Difference in 2013 = 8640 − 2662 = ₹5978
⇒ As ₹5978 > ₹5000, the difference exceeds ₹5000 for the first time in 2013.
∴ The correct answer is 2013.
Additional Information
Successive Percentage Increase
When a value increases continuously over years, the formula is: Final Value = Initial Value × (1 + R/100)n, which uses the exact same principles as the Compound Interest formula.
Multiplying Factor Method
To increase a given number by R%, multiply it directly by the factor (1 + R/100). For example, a 20% continuous yearly increase means multiplying by 1.2 repeatedly each year.
Percentage Change Calculation
The overall percentage change between two values is calculated as: % Change = (Final Value − Initial Value) ÷ Initial Value × 100.