Question

If the price of cooking oil increase by 30%. if one person intends to spend 15 %on it, then how much will she have to reduce her purchase?

Answer 1

Given:

(i) Price of oil increases by 30%

(ii) A person spends 15% on it.

To find:

(i) Percentage by which her purchases is reduced

Solution:

Let her earnings be 100.

Let the initial price of oil be x

She spends 15% of it on oil.

So, money spent on oil = (15x/100)

Savings = x - 15x/100

= 85x/100

Price of oil increases by 30%.

New price of oil = 130x/100 = 1.3x

She spends 15% of earnings on oil.

So, money spent = (15/100)(1.3x)

= 0.195x

Savings = x - 0.195x

= 0.805x

So her savings decreased by (0.85x - 0.805x)

= 0.045x

Percentage decrease = [(0.045x/x)*100]%

= 4.5%

So, 4.5% is the answer.