The income of A is 40% less than that of B. if A gets 25% rise in his income and B gets 40% rise in his income, then the percentage increase (correct to two decimal places) in the combined incomes of A and B will be:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 34.38.
Explanation:
Let the income of B be 100x.
Now, income of A = 40% less than B = 60x
Combined income of A and B = 100x + 60x = 160x
Income of B after increment = = 140x
Income of A after increment = = 75x
Now combined income of A and B after increment = 140x + 75x = 215x
So, the required increase in income = 215x - 160x = 55x
Now, percentage increase = = 34.375 = 34.38%
Hence the required answer is 34.38%.