During the lockdown, a state government gives 4.5 kg of rice to each person of a family at a cost price of ₹40 per kg. But the distributor uses a false weight of 3.75 kg instead of 4.5 kg and distributes the rice. The accumulated rice was sold in the black market at double the price. He showed the government that he distributed 2700 kg of rice. When caught, he was made to pay a fine of 125% of what he earned in the black market. What was his fine amount?
- A₹54,000
- B₹45,000
- C₹28,000
- D₹36,000
Solution & Step-by-step Explanation
The distributor claims to distribute 2700 kg of rice according to correct measurements.
The ratio of actual weight distributed to reported weight is:
4.5
3.75
=
450
375
=
6
5
Therefore, the actual amount of rice distributed is:
Actual weight=2700×
6
5
=2250 kg
The amount of accumulated rice stolen to be sold in the black market:
Stolen rice=2700−2250=450 kg
The normal price is ₹40/kg. In the black market, it is sold at double the price:
Black market price=40×2=₹80/kg
Earnings from the black market:
Earnings=450×80=₹36,000
The fine is 125% of the black market earnings:
Fine=36000×
100
125
=36000×1.25=₹45,000
The ratio of actual weight distributed to reported weight is:
4.5
3.75
=
450
375
=
6
5
Therefore, the actual amount of rice distributed is:
Actual weight=2700×
6
5
=2250 kg
The amount of accumulated rice stolen to be sold in the black market:
Stolen rice=2700−2250=450 kg
The normal price is ₹40/kg. In the black market, it is sold at double the price:
Black market price=40×2=₹80/kg
Earnings from the black market:
Earnings=450×80=₹36,000
The fine is 125% of the black market earnings:
Fine=36000×
100
125
=36000×1.25=₹45,000