Correct Answer - Option 2 : Rs. 168
Given:
Seven of them spent = Rs. 160 each
Eighth man spent Rs. 7 more than the average of all of them
Concept:
Average value = Sum of all values/Number of values
Calculation:
Let, average expenditure = Rs. x
According to the question,
⇒ 8x = 7 × 160 + (x + 7)
⇒ 7x = 1127
⇒ x = 161
∴ Eighth man spend = Rs. (161 + 7) = Rs. 168