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?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 23.
Explanation:
Let the income of the family be 100 units.
Food expenditure = 35% of 100 = 35 units
Income of the family after increment = 130% of 100 = 130 units
Percentage expenditure = = 26.9% ≈ 27%
So, percentage difference = = 23%
Hence the required answer is 23%.