Question

The expenditure on food is 35% of the income of a particular family. If the income is raised by 30%, then how much percentage (to the nearest whole number) of food expenditure is less than the initial percentage to keep the food expenditure unchanged?
1. 17
2. 23
3. 2
4. 20

Answer 1

Correct Answer - Option 2 : 23

Given:

Expenditure of food = 35% of income of family

Calculation:

Let income of family be Rs.a.

Expenditure of food = 35a/100 = Rs.7a/20

New income of family = a × 130/100 = Rs.65a/50

New expenditure of food = 65a/50 × 35/100 = Rs.91a/200

∴ Required percentage = (91a/200 - 7a/20)/(91a/200) × 100 = 23.07% ≈ 23%