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?

(a) 29.12
(b) 29.72
(c) 30.12
(d) 32.65
(e) none of these

• If the paper rate increases at 1.5% more than the inflation rate which is 6.5%
  This means paper rate increase is 1.5+6.5 = 8% per year
  For the first year the increase is 8 % or (8/100)x25 = 2
  So the new cost is 25+2 = 27
  For the second year the increase is the same = (8/100)x27 = 2.16
  So the cost = 27+2.16 = 29.16
• 11 years agoHelpfull: Yes(72) No(1)
• 1.5+6.5=8.0
  (108/100)*(108/100)*25=29.16
• 13 years agoHelpfull: Yes(15) No(4)
• e. none of these
• 10 years agoHelpfull: Yes(3) No(6)
• option e is write answer
  
• 8 years agoHelpfull: Yes(1) No(2)
• cost after 2 year is 29.16
  ans is (e)
• 5 years agoHelpfull: Yes(0) No(0)