# The Municipality of a Town Increases Water Tax by 20% and Water Consumption Decreased by 20%. Then the Percentage of Increase Or Decrease in the Monthly Expenditure Is: - Mathematics

MCQ

The Municipality of a town increases water tax by 20% and water consumption decreased by 20%. Then the percentage of increase or decrease in the monthly expenditure is:

• 4% increase

• 4% decrease

• 5% increase

• 5% decrease

#### Solution 1

The Municipality of a town increases water tax by 20% and water consumption decreased by 20%. Then the percentage of increase or decrease in the monthly expenditure is: 4% decrease

#### Solution 2

4% decrease

Explanation:

Let initially rate of water tax was ₹ 100

By increasing the water tax rate by 20% per 1000 litre
then, water tax of 1000 litre = 120

Also, when consumption is reduced by 20%

new consumption=1000xx80/100=800 litre

Now, water tax of 800 litres =120/1000xx800=₹ 96

Percentage decrease in expenditure

=(100-96)/100xx100=4%decrease

Concept: Percentage, Discount and Partnership (Entrance Exam)
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