Paper 1 · Mathematical Reasoning and Aptitude
The price of cooking oil increases by 25%. By what percentage should a family reduce its use of cooking oil so that the expenditure on it does not increase?
A25%
B30%
C20% ✓ Correct
D15%
Correct answer: (C) 20% — The family should reduce its use by 20%, so that is the answer.
Explanation
★The family should reduce its use by 20%, so that is the answer.
★To keep the expenditure the same, the reduction in use must offset the rise in price.
★The required reduction percentage is the rise divided by the new price level, times 100.
★That is 25 divided by 125, times 100.
★This equals 20 per cent.
★So the family should cut its use of cooking oil by 20%.
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