The income of Raju is 25% more than that of Manju. Raju got a 25% rise in his income, and Manju got a 40% rise in his income, the percentage increase in their combined incomes is:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 31.67%
Let the income of Manju is 400 units
Then the income of Raju = 500 units
Net income = 400 + 500 = 900 units
Now the income of Manju = 400 × 1.4 = 560 units
The income of Raju = 500 × 1.25 = 625 units
Net new income = 560 + 625 = 1185 units
Hence, the increased % = (1185 - 900)/9 = 31.67%