MBA Entrance preparation Math questionbank, sample quant questions - Ascent Education - MBA coaching classes

Ascent Education - IIM, CAT, XAT, TANCET, MBA Entrance Training Classes
 
TANCET '16 Classroom Program
 
XLRI XAT Classroom Program
 
Other Courses
 
Other Links
 
Contact Us
+91 44 4500 8484
+91 96000 48484
 
Facebook / Twitter / Blog / Videos
Follow Ascent Education's TANCET prep on Facebook   Follow Ascent's TANCET prep on Twitter   TANCET MBA prep blog   TANCET MBA prep videos   Google+

You are here: Home   XAT, TANCET Prep Questions  Percents, Fractions   Question 9

Percentages - Arithmetic : TANCET 2016 Free Practice Question

The question is from the topic Percentages.

Question

If the price of petrol increases by 25%, by how much must a user cut down on his petrol consumption so that his expenditure on petrol remains unchanged?
  1. 25%
  2. 16.67%
  3. 20%
  4. 33.33%

Correct Answer

20%. Choice (3)

Explanatory Answers

Let the price of petrol be Rs.100 per litre. Let the user use 1 litre of petrol. Therefore, his expense on petrol = 100 * 1 = Rs.100

Now, the price of petrol increases by 25%. Therefore, the new price of petrol = Rs.125.

As he has to maintain his expenditure on petrol constant, he will be spending only Rs.100 on petrol.

Let 'x' be the number of litres of petrol he will use at the new price.

Therefore, 125 * x = 100 => x = 100/125 - 4/5 =0.8 litres.

He has cut down his petrol consumption by 0.2 litres = 0.2/1 * 100 = 20% reduction.

There is a short cut for solving this problem.

If the price of petrol has increased by 25%, it has gone up 1/4th of its earlier price.
Therefore, the % of reduction in petrol that will maintain the amount of money spent on petrol constant = 1/4+1 = 1/5 20%

i.e. Express the percentage as a fraction. Then add the numerator of the fraction to the denominator to obtain a new fraction. Convert it to percentage - that is the answer.

Correct Answer (3)



More Questions on Percents & Fractions



CAT, XAT, TANCET Practice Questions and Answers : Listed Topicwise

     
     
     
     
     
     
     
 


Add to del.icio.us Add to del.icio.us Stumble It Stumble It digg this digg this
XLRI | FMS | ISB
Disclaimer | Privacy Policy | Terms of Use | © 2002 - 16 Ascent Education. All rights reserved.