The price of a car is ₹ 3,25,000. It was insured to 85\% of its price. The car was damaged completely in an accident and the insurance company paid 90\% of the insurance. What was the difference between the price of the car and the amount received?
(a)₹ 32,500
(b)₹ 48,750
(c)₹ 76,375
(d)₹ 81,250
Answer
Answer (as printed): C
Explanation
Amount paid to car owner = 90\% of 85\% of ₹ 3,25,000 $$\begin{aligned} & =₹\left(\frac{90}{100} \times \frac{85}{100} \times 325000\right)=₹ 2,48,625 . \\ & \therefore \text { Required difference }=₹(325000-248625)=₹ 76,375 . \end{aligned}$$
Explanation as extracted from the printed page; notation may be imperfect.