The price of rice, per kg, is increased by 18% and the quantity of rice brought decreased by 22%. What is the percentage change in the amount spent on rice?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 7.96% decrease.
Let the price of rice per kg = Rs. 100x
And Quantity of rice = 100y Kg
Amount spent = 100x × 100y
⇒ Rs.10000xy
Price increased = 100x + 18% of 100x = 100x + 18x = Rs.118x
Quantity of rice = 100y - 22% of 100y = 100y - 22y = 78y
New amount spent = 118x × 78y = Rs.9204xy
Change in amount spent = 10000xy - 9204xy = 796xy
Percentage change in amount spent = (796xy/10000xy) × 100 = 7.96 Decrease