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Question

A truck owner buys diesel at Rs.5, Rs. 8 and Rs. 10 per litre for three successive years. What approximately is the average cost per litre of diesel if he spends Rs. 4000 each year?

A

8.00

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B

7.00

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C

7.05

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D

8.05

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E

7.55

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Solution

The correct option is C 7.05 No. of litres used in first year = 4000 / 5 = 800, similarly for second and third year is 500 and 400. Average cost per litre = total cost for 3 years / total litres = (3 x 4000) / (800+500+400) = 7.05.

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