Question : A man purchased 7 bags of rice at the rate of Rs. 800 each, 8 bags of rice at Rs. 1,000 each, and 5 bags of rice at the rate of Rs. 1,200 each. What is the average cost of one bag of rice?
Option 1: Rs. 1,000
Option 2: Rs. 980
Option 3: Rs. 1,120
Option 4: Rs. 1,050
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Correct Answer: Rs. 980
Solution :
The average cost of one bag of rice = $\frac{7 \times 800+8 \times 1000+5 \times 1200}{7+8+5}$
The average cost of one bag of rice = $\frac{5600+8000+6000}{20}$
The average cost of one bag of rice = $\frac{19600}{20}$
The average cost of one bag of rice = Rs. 980
Hence, the correct answer is Rs. 980.
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