Question 74

Price of tea has increased by 20% butI have decided to increase my expenditure towards tea by 15% only. By What percentage should I reduce my consumption (correct to one place of decimal) in order to be able to maintain the same level of expenses towards tea?

Solution

Let the price of 100 kg tea be Rs 100 and I have also Rs 100 for expenditure on tea

After increment of 20% price of tea = Rs 120

Now I have also increased my expenditure towards tea by 15% = Rs 115

Now reduction in consumption for maintaining the same level of expenditure towards tea = $$\frac{5\times100}{120}=4.20 approx$$

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