The price of fuel decreases by 20%, 35% and 20% in three successive months, but increases by 50% 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 37.6%
Let original price = 100
After 1st month (20% decrease) 100 − 20% of 100 = 100 − 20 = 80
After 2nd month (35% decrease) 80 − 35% of 80 = 80 − 28 = 52
After 3rd month (20% decrease) 52 − 20% of 52 = 52 − 10.4 = 41.6
After 4th month (50% increase) 41.6 + 50% of 41.6 = 41.6 + 20.8 = 62.4
Change compared to original price = 62.4 − 100 = −37.6
Percentage change = (−37.6 ÷ 100) × 100 = −37.6%