The income of A is 40% more than that of B. If A got a 25% rise in his income and B got a 40% rise in his income, then the percentage increase in the combined incomes of A and B is?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e 31.25
Suppose
Income of B = 100
Income of A = 100 × 1.40 = 140
Combined income = 100 + 140 = 240
After raise of 25%:
Income of A = 140 × 1.25 = 175
After raise of 40%:
Income of B = 100 × 1.4 = 140
New combined income = 175 + 140 = 315
Hence,
Required % = [(315 – 240)/240] × 100 = 750/24
= 31.25%