Increase or Decrease in the Expenditure of the Money is :

Water tax is increased by 20% but it consumption is decreased by 20%. Then the increase or decrease in the expenditure of the money is

  1. 4% increase
  2. 4% decrease
  3. 5% decrease
  4. No change
Anurag Mishra Professor Asked on 26th October 2015 in Maths.
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1 Answer(s)

Answer is (2): 4% decrease

Explanation:-
Let the money be Rs. 100

Water tax increased by 20 %,
Then, the expenditure = 100 + 100 x 20/100
 = 100 + 20
 = Rs. 120

consumption is decreased by 20% ,
Then, the expenditure = 120 – 120 x 20/100
 = 120 – 24
 = 94 %

Then, the expenditure of money is decreased by = 100 – 96 = 4%.

Hence, the answer is (2) 4% decreased.

Monis Rasool Professor Answered on 28th October 2015.
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