The price of cooking oil increased by 8%. A family uses 12 litres of cooking oil per month. If the original price was ₹150 per litre, what is the additional annual expenditure (to the nearest Rs.) for the family due to the price hike?
Show answer & explanation
Correct answer: C
Explanation
Original price = ₹150 per litre
Price increase = 8%
Monthly consumption = 12 litres
Increase in price per litre = 8% × 150 = ₹12
Monthly additional expenditure = 12 × 12 = ₹144
Annual additional expenditure = 144 × 12 = ₹1,728