The price of salt has risen by 25%. If a family wants to keep their expenses on salt the same as earlier, the family will have to decrease its consumption of salt by

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Question: The price of salt has risen by 25%. If a family wants to keep their expenses on salt the same as earlier, the family will have to decrease its consumption of salt by

Solution:

Let the initial expenses on salt was Tk. 100.

Now, the price of salt has risen 25%.

So, to buy the same amount of salt, they need to spend,

= (100 + 25% of 100) = Tk. 125.

But, They want to keep expenses on salt, so they have to cut Tk. 25 in the expenses to keep it to Tk. 100.

Now, % decrease in Consumption,
(25/125) × 100 = 20%

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