CAT 1990 Question Paper Question 64

Instructions

The table below shows the estimated cost (in Rs. Lakh) of a project of laying a railway line between two places.

Question 64

If the cost of materials rises by 5% each year from 1990 onwards, by how much will the estimated cost rise?

Solution

In the year 1990, total increment will be 4+2.25+0.6+0.9 = 7.75
And in the year 1991, total increment be 3.75+3+0.8+1.05=8.60
Hence total increase in estimated cost will be = 16.35 Lakhs

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Comments

Tania

2 years, 9 months ago

Can some one explain to the solution to this question in detail

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