Question

An article costs Rs 50 presently. The rate of inflation is 300% per annum. What will be the cost of this article after 2 years??

Answer 1

As per the given question, the final value after 2 years can be calculated by the formula P(1+(r/100))^n.

Here, P = 50, r = 300% and n = 2. The final value after substituting values in the formula will be none other than 800. Hence, the value after 2 years will be 800.