The price of fuel decreases by 35%, 55% and 35% in three successive months, but increases by 65% in the fourth month. What is the percentage increase/decrease in the price of fuel in the fourth month as compared to its original price? (Round off the answer to two decimal places.)
Decreases by 68.63%
Apply each change as a multiplier to the original price \(P\):
After month 1 (−35%): \(0.65P\)
After month 2 (−55%): \(0.65 \times 0.45 \times P = 0.2925P\)
After month 3 (−35%): \(0.2925 \times 0.65 \times P = 0.190125P\)
After month 4 (+65%): \(0.190125 \times 1.65 \times P \approx 0.31371P\)
Net change = \(0.31371 - 1 = -0.68629\), i.e., the price decreases by ≈ 68.63%. The candidate chose D (65.25%) but the correct arithmetic gives ≈ 68.63%. The correct answer is : Decreases by 68.63%.
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