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Instructions

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

Question 96

What is the approximate cost incurred (in Rs. crore) for projects completed by 2000?

Solution

For year 1998:

Total value = 250 + 225 = 475

Required value = 1.1 * 475 = 522.5

For year 1999:

Total value = 275+235+250+300 = 1060

Required value = 1.1 * 1.1*1060 = 1282.6

For year 2000:

Total value = 250

Required value = 1.1 * 1.1*1.1*250 = 332.75

Total required value = 2137.85

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