1. 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 will be the cost of a kg of paper after 2 years?

• 29.16 Rs.
  Total increase in paper rate/year= 6.5+1.5= 8 %
  Value of Rs. 25, after 2 years @ 8% increase= 25*(108/100)(108/100)=29.16
  
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