Question
The price of fuel increases by 10%, and a person reduces
his usage by 5%. Find the percentage increase or decrease in his expenditure.Solution
ATQ,
Let the original usage be ‘x’ units and the price per unit be Rs. ‘y’.
Initial expenditure = Rs. xy
New increased price = Rs. 1.10y
Reduced usage = 0.95x
New expenditure = 1.10y × 0.95x = Rs. 1.045xy
Hence, the expenditure increases by 4.5%.
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