The price of petrol rises by 25%. By what percent must a car owner cut his consumption so that his spending on petrol rises by only 10%?
A. 12%
B. 10%
C. 14%
D. 15%
A. 12%
B. 10%
C. 14%
D. 15%
Best answer
Answer: A. 12%
Answer: (A) 12%
Shortcut: spending = price × consumption. New consumption factor = \(\frac{1.10}{1.25} = 0.88\), so the cut is 12%.
Plain: price 100 → 125, spending allowed 100 → 110, consumption = 110/125 = 88% of before.
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