The price of fuel decreases by 10%, 50% and 50% in three successive months, but increases by 45% 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?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Decreases by 67.38%.
Let original price = ₹100
Month 1: 10% decrease → 100 - 10 = ₹90
Month 2: 50% decrease → 90 × 0.5 = ₹45
Month 3: 50% decrease → 45 × 0.5 = ₹22.5
Month 4: 45% increase → 22.5 × 1.45 = ₹32.625
Now compare ₹32.625 to original ₹100:
% Change = [(32.625 - 100) / 100] × 100 = -67.375% =Decreases by 67.38%