The price of fuel decreases by 40%, 10% and 50% 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: D
Explanation
The correct answer is Option 4 i.e. Decreases by 59.5%.
Let original price = 100
After 1st month (40% decrease):
Price = 100 × (1 - 0.40) = 60
After 2nd month (10% decrease):
Price = 60 × (1 - 0.10) = 54
After 3rd month (50% decrease):
Price = 54 × (1 - 0.50) = 27
After 4th month (50% increase):
Price = 27 × (1 + 0.50) = 40.5
Change from original price = 40.5 - 100 = -59.5
Percentage change = (-59.5 / 100) × 100 = -59.5%
So, price decreased by 59.5% compared to the original price.