The price of fuel decreases by 40%, 15% and 45% in three successive months, but increases by 70% in the fourth month. What is the percentage increase/decrease in the price of fuel in the fourth month as compared to its original price? (Round off your answer to two decimal places)
- AOption (a)
Decreases by 53.03%
- BOption (b)
Increases by 48.21%
- COption (c)
Increases by 54.13%
- DOption (d)
Decreases by 52.32%
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Correct answer
Decreases by 52.32%
Why this answer is correct
Shortcut Trick
Use the multiplying factor method: Final Price = Initial Price × (1 − r1) × (1 − r2) × (1 − r3) × (1 + r4).
Net multiplier = 0.60 × 0.85 × 0.55 × 1.70 = 0.47685.
Net change = (1 − 0.47685) × 100 = 52.315% decrease.
∴ The correct answer is Decreases by 52.32%.
Alternate Method
Given: Initial Price = 100, Successive Decreases = 40%, 15%, 45%, Increase = 70%.
⇒ Price after 1st month = 100 × (60/100) = 60
⇒ Price after 2nd month = 60 × (85/100) = 51
⇒ Price after 3rd month = 51 × (55/100) = 28.05
⇒ Price after 4th month = 28.05 × (170/100) = 47.685
⇒ Total decrease = 100 − 47.685 = 52.315%
⇒ Rounding off to two decimal places = 52.32%
∴ The correct answer is Decreases by 52.32%.
Additional Information
Successive Percentage Change
For two changes a% and b%, the net change is [a + b + (a × b)/100]%. Use negative for decrease.
Multiplying Factor
A decrease of x% is equivalent to multiplying the value by (1 − x/100), while an increase is (1 + x/100).
Base Value Selection
Always assume 100 as the initial value in percentage problems to simplify calculations and direct conversion to %.