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
(IBM Question)
Asked by Saikat
Gaurav   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.
7 years ago
tapas   e
7 years ago
ashis majumder   its (e)
7 years ago
vikash   its should be (e)
6 years ago
supratim biswas   a
6 years ago
everestkumar   cost after one year 25+(0.008*25)+(0.065*25)=28.625
cost after two year 28.625+(0.08*28.625)+(0.065*28.625)=32.65 approx.
6 years ago
Anurag Jangir   should be (e)
6 years ago
Bijayeeta Banerjee   Given P=25 rs, rate= 8%,time=2 yrs
A=P(1+R/100n)^T= 25(1+8/100*2)^2= (26)^2/25=27.04
ans is e
6 years ago
Satish Suresh Patil   It is 29.16 , ans. is e
5 years ago
Rohini Goyal   (e), because 1978 Selling price is given, but cost is not given of that time.
5 years ago

Smiley