The price of petrol shot up by 5%. Before the hike, the price was Rs. 82 per litre. A man travels 3045 km every month and his car gives a mileage of 15 km per litre. What is the increase in the monthly expenditure (to the nearest Rs.) on the man's travel due to the hike in the petrol prices?
- (a)₹820
- (b)₹832
- (c)₹845
- (d)₹850
Answer
Why
Correct — B. Find the fuel used, then the rise per litre.
Litres per month = 3045 ÷ 15 = 203 litres
Rise per litre = 5% of ₹82 = ₹4.10
Extra cost = 203 × 4.10 = ₹832.30
To the nearest rupee: ₹832 → option (b)
Check: old bill 203 × 82 = ₹16,646, and 5% of 16,646 = ₹832.30.
Why the others are wrong
- (a)₹820 — ₹820 is 200 × ₹4.10, the rise for 200 litres, which covers only 3000 km. The man drives 3045 km, which needs 203 litres.
- (c)₹845 — ₹845 would need about 206 litres at ₹4.10 extra each. 3045 km at 15 km per litre is 203 litres, which gives ₹832.30.
- (d)₹850 — ₹850 would need about 207 litres at ₹4.10 extra each. The stem fixes 203 litres and a ₹4.10 rise, which give ₹832.30.
Concept
Expenditure = quantity × price. When only the price changes, the change in expenditure is the quantity times the change in price, which is the same percentage of the old bill.
The stem hides the quantity behind a unit chain: distance ÷ mileage = litres. Once you have 203 litres, the 5% rise works either way: 203 × ₹4.10, or 5% of the ₹16,646 old bill.
The distance and the mileage do not change, so the man still buys 203 litres a month. Only the price per litre moves, from ₹82 to ₹86.10.
Key facts
- Fuel used = distance ÷ mileage: 3045 ÷ 15 = 203 litres.
- A 5% rise on ₹82 is ₹4.10, so the new price is ₹86.10.
- With quantity unchanged, a p% price rise raises the bill by p%.
Study next
Common traps
- Rounding 3045 ÷ 15 to 200 litres, which lands on ₹820, one of the options.
- Computing the new monthly bill (₹17,478.30) and stopping there instead of taking the increase.
Here the price rise is a percentage and the quantity has to be built from distance and mileage. A price-rise question that asks for a cut in consumption instead is at 12 Sep 2024, 12:30, Quant Q.16 (rice and wheat, with wheat up 20%).
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