Percentage Mcqs

Q.  Water tax is increased by 20% but its consumption is decreased by 20 %. Then, the increase or decrease in the expenditure of the money is:________?

a. No change
b. 5 % decrease
c. 4 % increase
d. 4 % decrease


ANSWER: See Answer
 
Let tax = Rs. 100 and consumption = 100 units

Original Expenditure = Rs. (100 × 100) = Rs. 10000

New Expenditure = Rs. (120 × 80) = Rs. 9600

Decrease in expenditure = (400/10000 x 100) % = 4 %
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