In 1978, a kg of paper was sold at Rs25/-.If the paper rate increases at 1.5% more than the inflation rate which is 6.5% a year, then what wil be the cost of a kg of paper after 2 years?

(a) 29.12

(b) 29.16

(c) 30.12

(d) 32.65

(e) none of these

• 1.5%+6.5% = 8% ( rate increase every year)
  25*8% = 2/- 25+2= 27
  27*8% = 2.16/- 27+2.16 = 29.16 /-
  ans is (b) 29.16
• 8 years agoHelpfull: Yes(24) No(2)
• rate increases every year 1.5%+6.5%=8%
  after 2 years the cost will be 25*(1+8/100)^2=29.16
  ans is (b)
• 8 years agoHelpfull: Yes(3) No(0)
• 1.5%+6.5=8%
  p(1+r/100)^2
  25(1+8/100)^2
  29.16
• 7 years agoHelpfull: Yes(2) No(0)
• total percentage increase= 1.5%+6.5%=8%
  after 1 year cost will be=(8%of 25)+25=27
  So, after 2 year cost of paper will be=(8%of27)+27=29.16
• 5 years agoHelpfull: Yes(0) No(0)