Question

As noted through past experiences, the rate of increase in price of sugar
is 1000% campounded annually. What will be the cast per kg of sugar
as sold by Surya sugars in 2012 if it sells at Rs. 5 in 2010?​

Answer 1

Answer:

605

Step-by-step explanation:

=p* (1+R/100)²

= 5*(1+(1000/100))^2

=5*11*11

=  605

Answer 2

Given,

Compound interest rate(r) = 1000%

Initial Principle balance(P) = Rs 5

Time(T)  = 2 years

Interest is applied annually, n = 1

To Find,

Final amount after 2 years (A)=?

Solution,

From the formula of compound interest, we get

$A = P(1 + \frac{r}{n})^{nt}$

Putting value given in the question,

$A = P(1 + \frac{r}{n})^{nt}\\A = 5(1 + \frac{1000/100}{1})^{1 * 2}\\A = 5(1 + \frac{10}{1})^{2}\\A = 5( 1 + 10)^2$

$A = 5(11)^2\\A = 5 * 12\\A = 605$

Hence, The cost per kg of sugar as sold by Surya sugars in 2012 if it sells at Rs. 5 in 2010 will be Rs. 605.