The price of petrol shot up by 5%. Before the hike, the price was Rs. 80 per litre. A man travels 3200 km every month and his car gives a mileage of 20 km per litre. What is the increase in the monthly expenditure on the man's travel due to the hike in the petrol prices?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹640.
Petrol consumption per month = 3200/20 = 160 litres
Petrol price after hike = 80 × (105/100) = 84
Monthly expenditure before hike = 160 × 80 = 12800
Monthly expenditure after hike = 160 × 84 = 13440
Increase in monthly expenditure = 13440 - 12800 = 640