The price of fuel decreases by 25%, 35% and 40% in three successive months, but increases by 60% 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 53.2%
Let original price = 100
After 1st month: 100 × (1 − 25/100) = 100 × 0.75 = 75
After 2nd month: 75 × (1 − 35/100) = 75 × 0.65 = 48.75
After 3rd month: 48.75 × (1 − 40/100) = 48.75 × 0.6 = 29.25
After 4th month: 29.25 × (1 + 60/100) = 29.25 × 1.6 = 46.8
Change from original price = 46.8 − 100 = −53.2 → Decrease 53.2%