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    Question

    The price of electricity rose by 40%. Ravi, in response,

    reduced his usage by 25%. Determine the change in his electricity bill.
    A 1% decrease Correct Answer Incorrect Answer
    B 2% increase Correct Answer Incorrect Answer
    C 6% decrease Correct Answer Incorrect Answer
    D 5% increase Correct Answer Incorrect Answer

    Solution

    ATQ,

    Let initial electricity cost be Rs. 100a and usage be 100b units

    Initial bill = 100a ├Ч 100b = Rs. 10000ab

    New bill = (1.40 ├Ч 100a) ├Ч (0.75 ├Ч 100b) = Rs. 10500ab

    Required percent = [(10500ab - 10000ab) ├╖ 10000ab] ├Ч 100 = 5% increase

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