pradeepkaushal9518 wrote:guy's net income equals his gross income minus his deductions. by what percent did guy's net income change on January 1 1989 when both his gross income and his deductions increased?
1. guy's gross income increased by 4 % on January 1 1989.
2. guy's deduction increased by 15 % on January 1989
plz explain yr answer
NI = GI-D
GI and D increased on jan-1-1989
GI inc by 4%. so new GI = 1.04GI
We do not have any information about deductions.. So INSUFFICIENT
D inc by 15%
So new D = 1.15D
No information about GI. So INSUFFICIENT.
Combining both,
we get new NI = 1.04GI-1.15D
perc increase = (1.04GI-1.15D - (GI-D))/GI-D *100
Still we cannot calculate the increase.. So E
let me take an example.. let GI be 200, D be 100
NI = 200-100 = 100
new GI = 208, new D = 115
new NI = 93
perc change is 7
Suppose GI = 200 and D =50. then
NI = 150
new GI = 208
new D = 57.5
new NI = nearly 150
perc change is nearly zero
So we cannot say for sure the percentage change..
Hope this helps!!
