Goods and Service tax on bread increases its cost by 15%. To keep their budget in control a family r

M4maths Previous Puzzles

04 May 2018 Percentage

Goods and Service tax on bread increases its cost by 15%. To keep their budget in control a family reduces its bread consumption by 15%.
What is the percent increase or decrease in the expenditure of the money?

OPtion

1) 2.25% increase
2) 2.75% increase
3) 97.25% increase
4) 3.25% increase
5) 3.75% increase
6) 2.25% decrease
7) 2.75% decrease
8) 97.25% decrease
9) 3.25% decrease
10) None of these

Solution

Lets assume inital consumption of bread Rs. 100
Post GST cost would have become Rs. 115

Considering the family has redcued the consumption so their new expense without GST would be = 100*(100-15)/100 = Rs. 85

With 15% GST the actual cost of bread would be = 85*15/100 + 85 = 97.75

Considering inital cost was 100 and new cost is 97.75 so its a decrese in the expenditure
Decrease in expense = 100 - 97.75 = 2.25%

Correct Option: 6 Best Solution (0)