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If the cost of materials rises by 5% each year from 1990 onwards, by how much will the estimated cost rise? (approximately)1). Rs. 11.4 lakh2). Rs. 16.4 lakh3). Rs. 21.4 lakh4). Rs. 26.4 lakh |
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Answer» Total cost of materials = cost of (cement + steel + bricks + other BUILDING materials) Estimated cost of materials for 1990 = 80 + 45 + 12 + 18 = 155 lakhs Estimated cost of materials for 1991 = 75 + 60 + 16 + 21 = 172 lakhs Given, cost of materials RISES by 5% each year from 1990 onwards. ∴ Actual cost of materials in 1990 = 155 + 5% of 155 = 162.75 lakhs Actual cost of materials in 1991 = 172 + 5% of 172 = 180.6 lakhs ∴ Increase in estimated cost = (162.75 + 180.6) – (155 + 172) = 16.35 lakhs ≈ 16.4 lakhs |
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