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Option 2 : Rs. 39

Given 

Original Number of student = 120 

Cost of consumption increased per day = Rs 80 

Formula used 

Average = Sum of observation/No. of observation 

Calculation 

Let the average cost of each student be x 

After joined 20 student the average cost of each student be x - 5 

According to the question 

120x + 80 = 140(x - 5) 

⇒ 120x + 80 = 140x - 700 

⇒ 20x = 780 

⇒ x = 39 

∴ The initial consumption of each student is Rs 39 

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