A man purchased 7 bags of rice at the rate of Rs. 800 each, 8 bags of rice at Rs. 1000 each and 5 bags of rice at the rate of Rs. 1200 each. What is the average cost of one bag of rice ?

A. Rs. 1000

B. Rs. 980

C. Rs. 1120

D. Rs. 1050

Answer: Option B

Solution(By Examveda Team)

According to the question,
Average
= $$\frac{7 × 800 + 8 × 1000 + 5 × 1200}{20}$$
= $$\frac{5600 + 8000 + 6000}{20}$$
= $$\frac{19600}{20}$$
∴ Average = Rs. 980