AFCAT Model Paper 4

Given:
Increase in the cost of cooking oil by 45%
Decrease in the consumption of oil by 20%
Formula Used:
If the successive increase in percentages be a% and b%.
In that case, the total increase will be (a+b+

ab

100

)%
Calculation:
According to the question,
The net effect of the successive percentage change =45+(−20)+

45×(−20)

100

⇒ 45 – 20 – 9
⇒ 16
∴ The expenditure for oil of that consumer will be increased by 16%.