Question

3. The rate of increase of the price of sugar is observed
to be two percent more than the inflation rate
expressed in percentage. The price of sugar, on
January 1, 1994, is Rs. 20 per kg. The inflation rate
for the years 1994 and 1995 are expected to be 8%
each. The expected price of sugar on January 1,
1996 would be​

Answer 1

Step-by-step explanation:

Increase in the price of sugar = (8 + 2) = 10%

Hence, price of sugar on,

=20×110×110100×100=Rs.24.20