If inflation increases at a rate of 8 p.c.p.a. what will a 20 article cost at the end of two years? Choose one.
A) Between 20 and 21
B) Between 21 and 22
C) Between 22 and 23
D) Between 23 and 24
E) None of these
Required sum   = 20(1+8/100)2=20×27×27/25×25=23.3   Answer Between 23 and 24
<result>D</result>
If inflation increases at a rate of 8 p.c.p.a. what will a 20 article cost at the end of two years?