Question

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 $1$ January $2021$ was Rs. $20$ per kg. The inflation rates of the years $2021$ and $2022$ are expected to be $8\%$ each. The expected price of sugar on $1$ January $2023$ would be

• A. Rs. $24.20$
• B. Rs. $25$
• C. Rs. $26.50$
• D. Rs. $23.60$

Answer 1

The correct option is A Rs. $24.20$

Increase in the price of sugar
$=(8+2)=10\%$
Hence, price of sugar on $1$ January $2023$
$=\frac{20\times 110\times 110}{100\times 100}$
$=$ Rs. $24.20$