Question

If the income of Company Q in 2001 was 10% more than its income in 2000 and the Company had earned a profit of 20% in 2000, then its expenditure in 2000 (in million US $) was?

• A. 28.28
• B. 30.3
• C. 32.32
• D. 34.34

Answer 1

The correct option is B 30.3

Let the income of Company Q in 2001 = x million US $.Then,incomeofCompanyin2001$= \left ( \dfrac{110}{100} \times x \right )$millionUS$
$\therefore \frac{110x}{100}=40\Rightarrow x=\left(\frac{400}{11}\right)$
i.e. income of Company Q in 2000 $=\left(\frac{400}{11}\right)$ million US $.
Let the expenditure of Company Q in 2000 be E million US $.
Then, $20=\frac{\left[\right(400/11)-E]}{E}\times 100$ [$\because$% Profit = 20%]
$\Rightarrow 20=[\left(\frac{400}{11E}\right)-1]\times 100$
$\Rightarrow E=\frac{400}{11}\times \frac{100}{120}=30.30$
$\therefore$ Expenditure of Company Q in 2000 = 30.30 million US $.