The expenditure of a company increases by 25%, then increases by 30%, then further decreases by 20%.The overall percentage change in expenditure is:
Answer & explanation
Correct answer: option 2
Let Initial expenditure = E
ATQ ,
Increased income = E × \(\frac{125}{100}\) × \(\frac{130}{100}\) × \(\frac{80}{100}\)
= E × \(\frac{5}{4}\) × \(\frac{13}{10}\) × \(\frac{4}{5}\)
= 1.3E
Percentage Increase = \(\frac{1.3E - E}{E}\) × 100 = 30%