The price of fuel decreases by 15%, 25% and 35% in three successive months, but increases by 40% 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: A
Explanation
The correct answer is option 1 i.e. Decreases by 41.98%.
Let the original price = 100
After 1st month: 100 − 15% = 100 × (1 − 15/100)
= 100 × 0.85 = 85
After 2nd month: 85 − 25% = 85 × (1 − 25/100)
= 85 × 0.75 = 63.75
After 3rd month: 63.75 − 35% = 63.75 × (1 − 35/100)
= 63.75 × 0.65 = 41.4375
After 4th month: 41.4375 + 40% = 41.4375 × (1 + 40/100)
= 41.4375 × 1.4 = 58.0125
Compare with the original price 100:
Change = 58.0125 − 100 = −41.9875