Hi Amey,
Let's begin by determining the original price (x):
(25/4)% = 6.25% = 6.25/100 = 0.0625
reduced price = 120 rs
x - 0.0625x = 120
0.9375x = 120
x = 120/0.9375
x = 128 rs (original price)
Next, let's calculate at what sugar amounts
(x and x+1) will the reduced price yield one more kg of sugar than the original price (this is an inverse relationship - more sugar for less money):
128 : 120 = x+1 : x
128/120 = x+1:x
16/15 = x+1/x
x+1 = 16 kgs of sugar at reduced price
x = 15 kgs of sugar at original price
Now, we can calculate the original unit price (rate of sugar) and the reduced unit price (rate of sugar):
128 rs / 15 kgs = 8.53 rs / kg (orig. unit price)
120 rs / 16 kgs = 7.5 rs / kg (reduced unit price)
As we would expect to see - the reduced unit price is lower than the original unit price.
Thanks for submitting this problem and glad to help.
God bless, Jordan.
Amey B.
10/11/15