Correct option is C
Given:
Successive price decreases in the first three months: 45%, 35%, and 30%
Price increase in the fourth month: 45%
Formula Used:
Effective Multiplier = Product of successive change multipliers
Percentage Change = (Effective Multiplier - 1) × 100
Solution:
Let the initial price of fuel be 100.
The multiplier for a 45% decrease is 1 - = 0.55
The multiplier for a 35% decrease is 1 - = 0.65
The multiplier for a 30% decrease is 1 - = 0.70
The multiplier for a 45% increase is 1 + = 1.45
Now, we find the effective multiplier after four months:
Effective Multiplier = 0.55 × 0.65 × 0.70 × 1.45
Effective Multiplier = 0.3628625
Final price relative to original = 100 × 0.3628625 = 36.28625
Percentage Change = 36.28625 - 100 = -63.71375
The negative sign indicates a decrease.
Rounding off to two decimal places, the decrease is 63.71%.
Final Answer
So the correct answer is (c)
Exam Hall Method:
English
100 Questions
100 Marks
90 Mins
