The price of diesel increases by 5% every year. If the current price of diesel is ₹80 per litre, then what will be the price of diesel per litre after 2 years?
Answer
The correct answer is C: ₹88.2. After 2 years: 80 × (105/100)² = 80 × 1.05 × 1.05 = 80 × 1.1025 = ₹88.2.