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Initially, there are 25 people on a trip. Due to the addition of 15 more people on the trip, the expense for accommodation is increased by Rs. 5000 and the average expense per person is reduced by Rs. 62.5. What is the new expense for accommodation?

Initially, there are 25 people on a trip. Due to the addition of 15 more people on the trip, the expense for accommodation is increased by Rs. 5000 and the average expense per person is reduced by Rs. 62.5. What is the new expense for accommodation? Correct Answer Rs. 17500

Let the intial average expense per head be Rs. M

Given,

Original accommodation expense = 25M

Then,

⇒ 25M + 5000 = 40(M – 62.5)

⇒ 25M + 5000 = 40M – 2500

⇒ 40M - 25M = 5000 + 2500

⇒ 15M = 7500

⇒ M = 500

Original accommodation expense = 25 × 500 = Rs. 12500

∴New accommodation expense = 12500 + 5000 = Rs. 17500

Thus, the correct answer is option 2.

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