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Instructions

The following table refers to hotel construction projects. The cost of project increased at the rate of 10% per annum; if completed beyond 1997.

Question 116

What is the approximate cost incurred for projects completed by 2000?

Solution

For projects completed in 2000, cost = Rs. 250 crore

Total cost (with tax) = $$250\times (1.1)^3=Rs.$$ $$332.75$$ crore

Total costs of projects completed in 1998 = $$(250+225)\times(1.1)=Rs.$$ $$522.5$$ crore

Total costs of projects completed in 1999 = $$(275+235+250+300)\times(1.1)^2=Rs.$$ $$1282.6$$ crore

$$\therefore$$ Total cost = $$332.75+522.5+1282.6\approx2140$$ crore

=> Ans - (A)

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