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? give me the steps plz......
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Answer Posted / jitendra
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
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