Question

The price of wheat, per kg is increased by 17.5% and the quantity of wheat bought is decreased by 10%. What is the percentage change in the amount spent on when?
1.    Increase, 5.44%
2.    Decrease, 5.75%
3.    Decrease, 5.44%
4.    Increase, 5.75%

Answer 1

Correct Answer - Option 4 :    Increase, 5.75%

Calculation:

Let previously the price of wheat be Rs.a

New price of wheat = a × (117.5/100) = Rs.4.7a/4

Quantity of wheat initially bought be m.

New quantity of wheat bought = 90m/100 = 9m/10

Previously total price of wheat was am

Then,

Amount spent increase = (4.7m/4 × 9m/10 - am)/am × 100

⇒ 5.75%

∴ 5.75% increase in amount.