BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Income & Saving

Expert replies
by pradeepspanchal » Tue Dec 14, 2010 7:58 am
In the year 2001, a man spends 40% of his total income on food. In 2002 his income increases by 40% and his expenditure on food increases by 50% with respect to 2001. In 2003 his income increases by another 25% based on 2002 and his expenditure on food increase by 16.66% based on the expenditure on food in 2001. What percent is his expenditure on food of total income in 2003?

a) 40 %
b) 50 %
c) 10 %
d) 70%
e) None

I think I am making some calculation mistake. Please help.
Join the discussion
Source: — Problem Solving |

by frank1 » Tue Dec 14, 2010 8:14 am
pradeepspanchal wrote:In the year 2001, a man spends 40% of his total income on food. In 2002 his income increases by 40% and his expenditure on food increases by 50% with respect to 2001. In 2003 his income increases by another 25% based on 2002 and his expenditure on food increase by 16.66% based on the expenditure on food in 2001. What percent is his expenditure on food of total income in 2003?

a) 40 %
b) 50 %
c) 10 %
d) 70%
e) None

I think I am making some calculation mistake. Please help.
i am also getting around 26% which suggests that answer should be E...

2001-------100 ------------------40
2002-------140-------------------60
2003------140+35=175--------40+7=47
GMAT score is equally counted as your GPA and 78 clicks can change you life.
Join the discussion

by diebeatsthegmat » Tue Dec 14, 2010 11:18 am
pradeepspanchal wrote:In the year 2001, a man spends 40% of his total income on food. In 2002 his income increases by 40% and his expenditure on food increases by 50% with respect to 2001. In 2003 his income increases by another 25% based on 2002 and his expenditure on food increase by 16.66% based on the expenditure on food in 2001. What percent is his expenditure on food of total income in 2003?

a) 40 %
b) 50 %
c) 10 %
d) 70%
e) None

I think I am making some calculation mistake. Please help.
i also solved and found the answer is E
what the Oa do you have? outline your calculation mistake....we'd love to see
Join the discussion