Question

The excise duty on a certain item has been reduced to Rs 760 from Rs 950. Find the reduction per cent in the excise duy on that item.

Answer 1

Original excise duty on the item = Rs 950
Amount reduced on excise duty = Rs (950 − 760) = Rs 190
∴ Reduction percent = $\left(\frac{\mathrm{Reduction}\mathrm{amount}}{\mathrm{Original}\mathrm{value}}\times 100\right)$
= $\left(\frac{190}{950}\times 100\right)$ = 20
Hence, the excise duty on that item is reduced by 20%.