Question

Water tax is increased by 20% but its consumption is decreased by 20%. Then the increase or decrease in the expenditure of the money is:

Options

• 5% decrease

• 4% decrease

• No change

• 4% increase

Answer 1

4% decrease

Explanation:

Tax	5	:	6
Consumption	5	:	4
Expenditure	25	:	24
	1

∴ `1/25 xx 100` = 4%