Question

Rate of inflation is 1000% per annum. what is the value of an article two years from now if it costs rs. 6 today?

Answer 1

Always remember that

1000% increase is 11 times the original price.
suppose, if x is the original price, then the price after 1000% increase is  

x+x*(1000/100)=11x.

here, x=6. At the end of the first year, cost=6*11=66.
Now, this becomes the starting price for the next year. 

Hence at the end of 2nd yr, 

66*11=726.

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