During the lockdown, the state government gives 4.5 kg of rice to each person in a family at a cost price of Rs. 40 per kg. But the distributor uses a false weight of 3.75 kg instead of 4.5 kg and distributes the rice. The accumulated rice was sold in the black market at double the price. He showed the government that he distributed 2700 kg of rice. When caught, he was made to pay a fine of 125% of what he earned in the black market. What was his fine amount?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. Rs. 45,000.
Number of distributions = 2700/4.5 = 600 persons
Actual rice distributed = 600 × 3.75 = 2250 kg
Accumulated rice = 2700 - 2250 = 450 kg
Black market price = 2 × 40 = Rs. 80/kg
Earnings = 450 × 80 = Rs. 36000
Fine amount = 1.25 × 36000 = Rs. 45000