CAT 1995 — QA Question 34

Successive Percentage ChangeEasy

The rate of inflation was 1000%. Then what will be the cost of an article, which costs 6 units of currency now, 2 years from now?

Answer & solution

Correct answer: 726

A
666
B
660
C
720
726

Solution

Required cost = $6 {[1 + \frac{1000}{100}]}^{2}$ = 6(11)² = 121 × 6 = 726.

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CAT 1995 QA Q34: The rate of inflation was 1000%. Then what will be the cost of an article, which costs 6 units of currency now — Solution | TheCATExam