The cost of food accounted for 25% of the income of a particular family. If the income get raised by 20%, then what should be the percentage point decreased in the food expenditure as a percentage of the total income to keep the food expenditure unchanged between the two years?
3.5
8.33
4.16
5
Answers
Answered by
17
Hey there!
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Your answer is 4.16%.
Explanation :
Let's take 100 be the initial income.
The initial food expenditure is 25%.
ā“ The new income goes to 120.
Now, food expenditure has to be constant or maintained at 25.
Therefore, the percentage of the new income is 20.833%
Hence, the percentage point drop from 25 - 20.833 = 4.16%
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