Question

The price of fuel decreases by 40%, 10% and 50% in three successive months, but increases by 50% in the fourth month. What is the percentage increase/decrease in the price of fuel in the fourth month as compared to its original price?

• A. Increases by 57.3%
• B. Decrease by 59.5%
• C. Increases by 56.29%
• D. Decreases by 61.17%

Answer 1

Answer:

B. Decrease by 59.5%

Let the original price be 100

Let the original price of fuel = 100 units (for simplicity).

First month: decrease by 40%

$100 - 40$

Second month: decrease by 10%

$60 - 10$

Third month: decrease by 50%

$54 - 50$

Fourth month: increase by 50%

$27 + 50$

Original price = 100
New price after 4 months = 40.5
$\text{Percentage change} = \frac{40.5 - 100}{100} \times 100 percent= \frac{-59.5}{100} \times 100$ % = -59.5%

The price decreased by 59.5% compared to the original price.

= 22$