Question

The price of fuel decreases by 60%, 30% and 20% in three successive months, but increases by 60% 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 61.74%
• B. Increases by 67.33%
• C. Decreases by 64.16%
• D. Decreases by 67.12%

Answer 1

Answer:

C. Decreases by 64.16%

1. Assume an Initial Price:

• For simplicity, let's assume the initial price of fuel is ₹100.

2. Calculate the Price After Each Decrease:

• Month 1 (60% decrease):

  • Decrease = 100 * 0.60 = ₹60

  • Price after decrease = 100 - 60 = ₹40

• Month 2 (30% decrease):

  • Decrease = 40 * 0.30 = ₹12

  • Price after decrease = 40 - 12 = ₹28

• Month 3 (20% decrease):

  • Decrease = 28 * 0.20 = ₹5.60

  • Price after decrease = 28 - 5.60 = ₹22.40

3. Calculate the Price After the Increase:

• Month 4 (60% increase):

  • Increase = 22.40 * 0.60 = ₹13.44

  • Price after increase = 22.40 + 13.44 = ₹35.84

4. Calculate the Overall Percentage Change:

• Original price: ₹100

• Final price: ₹35.84

• Change in price: 35.84 - 100 = -64.16

• Percentage change: (-64.16 / 100) * 100 = -64.16%

Therefore, the price of fuel decreased by 64.16% in the fourth month as compared to its original price.