Difficulty: Medium
Correct Answer: Rs. 8.00 per litre (approx.)
Explanation:
Given
Concept: When quantities differ, the average price is a weighted average by litres, not a simple mean of prices.
Step 1: Litres bought each year
L1 = 4000 / 7.50 = 533.33… LL2 = 4000 / 8.00 = 500.00 LL3 = 4000 / 8.50 ≈ 470.59 LTotal litres L ≈ 533.33 + 500.00 + 470.59 = 1,503.92 L
Step 2: Average cost per litre
Total spend over 3 years = 3 × 4000 = Rs. 12,000Average price = Total spend ÷ Total litres≈ 12,000 ÷ 1,503.92 ≈ Rs. 7.98/L, i.e., about Rs. 8.00 per litre (approx.)
Why not just average 7.50, 8.00, 8.50?
Final Answer
Approximate average cost ≈ Rs. 8.00 per litre.
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