The price of rice decreased by 6.25% and because of this reduction. Vandana is able to buy 1 kg more for ₹120. Find the reduce rate of rice.

Let original rate of rice be ₹ x per kg
Reduced rate = ₹ [(100 - 6.25) x (1/100) x W]
= ₹ 15W/16 per kg
According to the question
120/(15W/16) - 120/W = 1
⇒ (120 x 16)/15W - 120/W = 1
⇒ 120 x 16 - 1800 = 15W
⇒ 128 - 120 = W
∴ W = ₹ 8 per kg.
∴ Reduced rate = ₹ (15/16) x 8 per kg
=₹ 7.50 per kg