Water tax is increased by 20% but its consumption is decreased

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Water tax is increased by 20% but its consumption is decreased by 20%. Then the increase or decrease in the expenditure of the money is

1. 5% decrease
2. 4% decrease
3. No change
4. 4% increase

Correct Option: B

Using Rule 4,
Percentage effect

=		20 - 20 +	20 × -20			% = - 4%
			100

Negative sign shows decrease.