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Answer: Soution: Amount = 400 Let the initial price of 1kg rice = x therefore , Quantity of Rice* Price of 1kg of rice = Amount Quantity of Rice (Q1)= 400/x ----- (ist Equation) After Increment of Price , Price of 1 kg Rice = 125%x = 125/100x = 1.25x Quantity of Rice becomes = Q1 - 20 Kg (Given) We know that , Quantity of Rice *Price of 1 kg Rice = Amount Quantity of Rice (Q2) = 400/1.25x ------(2nd Equation) We know that , Q2 = Q1 - 20 and Q1 = 400 /x (From Ist Equation) hence , Substituting Q1 and Q2 in 2nd , we get 400/x - 20 =400/1.25x or 400/x - 400/1.25x - 20 =0 or 400/x[1 - 1/1.25] - 20 = 0 or 400 /x [(1.25 - 1)/1.25] - 20 = 0 or 400/x *1/1.25 = 20 or 400/x * 100/125 = 20 or 400/x *4/5 = 20 or 80/x *4 = 20 or 320 / x = 20 or x = 320/20 or x = 16 Hence the price of 1 kg of Rice = 16 rupees therefore , Increased price of 1 kg rice = 1.25*16 = 20 rupees and Increase in 1 kg price = 20 - 16 = 4 Rupees