Rice costs more than wheat by 25% for the same amount. By what percent is wheat cheaper than rice?
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Let the cost of Wheat be $100, then 25% of 100 is simply 1 0 0 2 5 × 1 0 0 = 2 5 . And because rice costs more than wheat by 25%, then the same unit of rice costs ($100) plus ($25) which is is equal to ($125).
Thus with the same measurements, we have $125 of rice and $100 of wheat.
And we want to find, for what percentage of 125 equals to 100? Let x denote this value, by setting up the equation, we have
1 2 5 × 1 0 0 x = 1 0 0
Solving for x yields x = 8 0 .
Thus, 80% of 125 is equal to 100. In other words, there is a drop of 1 0 0 % − 8 0 % = 2 0 % .
Hence, for the same unit of measurement, wheat is 20% cheaper than rice.