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The company plans to introduce a direct bus service between Chennai to Manipal. The market research results indicate that all the existing passengers travelling between Chennai and Manipal will use this direct bus if it is priced 5% below the minimum price they pay at present. What should the company charge approximately, in rupees, for this direct bus service?


Options:
A .   1991 
B .   2161
C .   2707
D .   2745
E .   2783
Answer: Option B
:
B

The lowest price is Rs. 2275. The company should charge 0.95 * 2275 = Rs. 2161. Hence option (b)



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