Question : Directions: When the petrol prices increased by 25%, Yogesh reduced his travel so as to keep his monthly expenses on petrol the same as earlier. By what percentage did Yogesh reduce his travel?
Option 1: 30%
Option 2: 25%
Option 3: 15%
Option 4: 20%
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Correct Answer: 20%
Solution :
Given:
Let us assume the cost of the petrol before increasing is Rs 100.
The petrol price has increased by 25 %.
The increased price will be –
⇒100 + (25 ÷ 100) × 100
⇒100 + 0.25 × 100
⇒100 + 25
⇒125 Rs
The increased expenditure = 125 – 100 = 25 Rs
So, consumption of petrol should decrease by percentage = (25 ÷ 125) × 100
⇒0.20 × 100 = 20%
So, Yogesh should decrease his travel expenses by 20%. Hence, the fourth option is correct.
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