← Numerical reasoningMedium
A public-sector procurement contract is awarded for office supplies over 3 years. In Year 1, the contract value is €240,000. In Year 2, costs rise by 5%. In Year 3, costs rise by a further 4% on Year 2 values. What is the total value of the contract over all three years, in euros?
Choose your answer
Show the worked explanation
Explanation
Step 1: Year 1 value: €240,000 Step 2: Year 2 value: €240,000 × 1.05 = €252,000 Step 3: Year 3 value: €252,000 × 1.04 = €262,080 Step 4: Total: €240,000 + €252,000 + €262,080 = €754,080