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Percentage increase in cost of sugar is ...

Percentage increase in cost of sugar is `2% ` more than inflation percentage. On January 1, 2004 cost of sugar is Rs. 20 / kg. In each year i.e., 2004 and 2005 the inflation rate is assumed to be `8%` . Then find the assumed price of sugar on January 1, 2006

A

`24.20` Rs./ kg

B

`22.20` Rs./kg

C

`20.20` Rs./kg

D

`26.20` Rs. /kg

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The correct Answer is:
A
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