1.

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

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


Discussion

No Comment Found

Related InterviewSolutions