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:
Answer & explanation
Correct answer: option 4
40% = \(\frac{2}{5}\) & 25% = \(\frac{1}{4}\)
Ratio of salary of A : Salary of B
3 : 5
Let salary of A = 30 & Salary of B = 50
New income of A = 30 + \(\frac{1}{4}\) × 30 = 30 + 7.5 = 37.5
New income of B = 50 + \(\frac{2}{5}\) × 50 = 50 + 20 = 70
Sum of new income of A & B = 70 + 37.5 = 107.5
Percentage increase in combined income = \(\frac{107.5 - 80 }{80}\) × 100
= 34.375%
= 34.38% ( correct to two decimal places )