The answer is D 96%.

In essence, Mary's income is 60% more than Tim's income translates into:

M = T + 3/5T = 8/5T

Tim's income is 40% less than Juan's income is:

T = J - 2/5J = 3/5J

The questions asks what percent is Tim's income relative to Juan's income (read carefully: it is not asking for Juan's in term of Tims'). So based on this you need to find M/J

First express the second equation in terms of T as follows:

J = 5/3T

Then,

M/J = (8/5) / (5/3) (note that the T's cancel each other)

M/J = 24/25

Now if you want to express in terms of 100's just multiply the fraction by 4

M/J = 24*4 / 25*4 = 96 / 100 = 96%

You can very well substitute 100 as a whole :

Start with Juan's income as 100.
Tim's =100-60=40
Mary's = 60+60 X 60/100= 96, which is 96% 0f 100 i.e Juan's income

M = .6T + T

T = .6J

Substitute the second equation into the first:

M = .6(.6J) + .6J

M = .36J + .6J = .96J or 96%