Question

The price of fuel decreases by 55%, 10% and 20% in three successive months, but increases by 65% 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 51.62%
• B. Increases by 48.43%
• C. Decreases by 46.54%
• D. Decreases by 50.53%

Answer 1

Answer:

C. Decreases by 46.54%

Let the original price = 100.

After 1st month (55% decrease):
(100 \times 0.45 = 45)

After 2nd month (10% decrease):
(45 \times 0.90 = 40.5)

After 3rd month (20% decrease):
(40.5 \times 0.80 = 32.4)

After 4th month (65% increase):
(32.4 \times 1.65 = 53.46)

Comparison with original price:

Original price = 100
Final price = 53.46

Decrease (= 100 - 53.46 = 46.54)

Price of fuel is decreased by 46.54% compared to the original price.