vinay888 wrote:
pushpitkc wrote:
Solution: 26.67%(Option E)
Let income be i, expenditure on food be e
Year 2001
i=200,e=80(40% on food)
Year 2002
i=280(increase of 40%)
e=120(50% increase over 2001)
Year 2003
i=350(another 25% over 2002)
e=560/6(increase of 16.67 or 1/6th on food expenditure in 2001)
Percentage = (560/(6*350))*100 = 26.67%
"e=560/6(increase of 16.67 or 1/6th on food expenditure in 2001)" this part seems wrong. 560/6 ~ 93.33. But the question says food expenditure increases by 16.67% over 2001. So it should come to ~123.33 and answer should be ~37%. Correct me if I am wrong.
No, he's right. Let me explain
2001
i = 100
e = 40
2002
i = Based on 2001 = 100+0.4*100= 140
e = Based on 2001 = 40+0.5*40 = 60
2003
i = Based on 2002 = 140+0.25*140 = 175
e = Based on 2001 = 40+(40/6 or 0.1667*40) = 280/6 or 46.67
-> (280/6 / 175)*100 = 26%
The question says income in 2003 "increases by another" 25% based on 2002, but expenditure food in 2003 "increases" by 16,67 % based on 2001, which you have to start over with 40, not 60.
So, the answer is (E)
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