SOLUTION: 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 wil be the cost of a kg of paper af

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: 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 wil be the cost of a kg of paper af      Log On


   

Question 1972: 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 wil be the cost of a kg of paper after 2 years?
Answer by longjonsilver(2297) About Me  (Show Source):
You can put this solution on YOUR website!
i don't know what Rs is , so i shall just take the value 25.
The paper increases in price every year by a total of 8%,
so, the first year, new price is 25*1.08 = 27
the second year, new price is 27*1.08 = 29.16
jon