Q. In 1978, a kg of paper was sold at Rs 25/-.If the paper rate increases at 1.5% more than the inflation rate which is 6.5% a year, then what will be the cost of a kg of paper after 2 years?

Option
(a) 29.12
(b) 29.16
(c) 30.12
(d) 32.65
(e) None of these

• total increase rate=(1.5+6.5)%=8%
  hence cost of a kg of paper after 2 year=25*(1+8/100)^2=29.16
  hece ans is b.
• 11 years agoHelpfull: Yes(19) No(1)
• If the cost of paper is rising 1.5% above inflation, which is 6.5%, then the total cost increase for paper will be 8.0%. To figure out the cost of paper after 2 years, you use the formula:
  
  25 * (1.08^2)
  Multiplying this out: 25 * (1.1665) = 29.16.
  
  So the cost of paper after 2 years will be 29.16
• 11 years agoHelpfull: Yes(16) No(0)
• ans is (b)29.16
• 11 years agoHelpfull: Yes(4) No(1)
• (1.5+6.5)% =8%
  25*108/100*108/100
  =29.16
• 9 years agoHelpfull: Yes(2) No(0)
• rate of inflation=6.5,1.5% more means increase by 8%. so 25*1.08*1.08=29.16.
• 11 years agoHelpfull: Yes(1) No(0)