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Question Paper from: SBI PO Prelims 2017

The income of a broker remains unchanged though the rate of the commission is increased from 3% to 4%. The percentage of slump in business is:

20%

25%

30%

40%

45%

Solution:

Chapter Name: Percentage

Let the business value change from x to y.

Then, 3% of x = 4% of y ⇒ $\frac{3}{100} \times x$ = $\frac{4}{100} \times y$

⇒ 3x = 4y ⇒ y = $\frac{3}{4} x$

Decrease in business = $(x - \frac{3}{4} x)$ = $\frac{x}{4}$

Percentage slump in business = $(\frac{x}{4} \times \frac{1}{x} \times 100)$ % = 25%

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SBI PO Prelims 2017

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