CAT 1990 Question Paper Question 66

Instructions

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

Question 66

After preparing the estimate, the provision for contingencies is felt inadequate and is therefore doubled. By what percent does the total estimate increase?

Solution

Total estimated cost before increment = 52.1+267.5+196.4+209.5 = 725.5

Increment in contingencies will be = 25.2

Hence, total estimated cost will also be increased with the same amount.

So percentage increment in total estimated cost will be = $$\frac{25.2}{725.5} \times 100 = 3.47$$

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