The price of diesel increased by 6%. Before the increase, the price was ₹85 per litre. A person travels 2880 km every month and his vehicle gives a mileage of 12 km per litre. What is the increase in the monthly expenditure (to the nearest ₹) on his travel due to the price hike?

The correct answer is ₹1,224 (Option 1).

Step-by-step Explanation:

Step 1: Calculate the total fuel consumption per month.
The person travels a total distance of 2880 km each month, and the vehicle gives a mileage of 12 km per litre.
Total volume of fuel needed per month = $\frac{2880}{12}$ = 240 litres.

Step 2: Calculate the increase in the price of diesel per litre.
The original price of diesel was ₹85 per litre, and it increased by 6%.
Price increase per litre = 6% of ₹85

$=\frac{6}{100}\times 85=5.10$

So, the price of diesel increased by ₹5.10 per litre.

Step 3: Calculate the total increase in monthly expenditure.
Since 240 litres of diesel are consumed every month, the total increase in monthly expenditure is:
Total increase = Total litres consumed × Increase in price per litre

$=240\times 5.10=1224$

Thus, the increase in the monthly expenditure on travel due to the price hike is ₹1,224.