Percentages · Question 29 · Hard

Percentages question 29

The price of cooking gas rises by 30%. By what percentage must a household reduce its consumption so that its expenditure on gas rises by only 4%?

  1. 26%
  2. 23%
  3. 20%
  4. 25%
Answer and explanation

Answer: C. 20%

Explanation: New expenditure = 1.30 × (new consumption) = 1.04, so new consumption = 1.04/1.30 = 0.8 of the original. Consumption must fall by 20%.

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