Mr. Jones' total annual gross salary, which was ₹ 10 lakhs per year in 2007, was reduced by 10\% in 2008. In 2007 his family expenditure for food items was 40\% of the total annual gross salary. The prices of average food items increased by 5\% between 2007 and 2008. Assuming that the family consumed the same amount of food in 2008, the percentage expenditure on food items, calculated on total annual gross salary in 2008, is
(a)43%
(b)45%
(c)47%
(d)49%
Answer
Answer (as printed): C
Explanation
Annual gross salary in $2007=₹ 1000000$. Expenditure on food items in $2007=40 \%$ of $₹ 1000000=$ ₹ 400000. Annual gross salary in $2008=90 \%$ of $₹ 1000000=₹ 900000$. Expenditure on food items in $2008=105 \%$ of ₹ 400000 = ₹ 420000. $$\begin{aligned} \therefore \quad \text { Required percentage } & =\left(\frac{420000}{900000} \times 100\right) \%=\frac{140}{3} \% \\ & =46.6 \% \approx 47 \% \end{aligned}$$
Explanation as extracted from the printed page; notation may be imperfect.