A firm's annual budget of Rs <span class="math-inline" data-latex-source="24" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>24</mn></mrow><annotation encoding="application/x-tex">24</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.6444em;"></span><span class="mord">24</span></span></span></span></span> lakhs is divided as follows: Salaries <span class="math-inline" data-latex-source="35\%" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>35</mn><mi mathvariant="normal">%</mi></mrow><annotation encoding="application/x-tex">35\%</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8056em;vertical-align:-0.0556em;"></span><span class="mord">35%</span></span></span></span></span>, Rent <span class="math-inline" data-latex-source="25\%" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>25</mn><mi mathvariant="normal">%</mi></mrow><annotation encoding="application/x-tex">25\%</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8056em;vertical-align:-0.0556em;"></span><span class="mord">25%</span></span></span></span></span>, Marketing <span class="math-inline" data-latex-source="20\%" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>20</mn><mi mathvariant="normal">%</mi></mrow><annotation encoding="application/x-tex">20\%</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8056em;vertical-align:-0.0556em;"></span><span class="mord">20%</span></span></span></span></span>, Technology <span class="math-inline" data-latex-source="12\%" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>12</mn><mi mathvariant="normal">%</mi></mrow><annotation encoding="application/x-tex">12\%</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8056em;vertical-align:-0.0556em;"></span><span class="mord">12%</span></span></span></span></span>, Miscellaneous <span class="math-inline" data-latex-source="8\%" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>8</mn><mi mathvariant="normal">%</mi></mrow><annotation encoding="application/x-tex">8\%</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8056em;vertical-align:-0.0556em;"></span><span class="mord">8%</span></span></span></span></span>. If Technology spend rises by <span class="math-inline" data-latex-source="25\%" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>25</mn><mi mathvariant="normal">%</mi></mrow><annotation encoding="application/x-tex">25\%</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8056em;vertical-align:-0.0556em;"></span><span class="mord">25%</span></span></span></span></span> without changing the original base amount, the new Technology spend becomes:
Practice this question from Chapter Mock 15: Data Interpretation, with options and an explanation.
Question
A firm's annual budget of Rs <span class="math-inline" data-latex-source="24" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>24</mn></mrow><annotation encoding="application/x-tex">24</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.6444em;"></span><span class="mord">24</span></span></span></span></span> lakhs is divided as follows: Salaries <span class="math-inline" data-latex-source="35\%" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>35</mn><mi mathvariant="normal">%</mi></mrow><annotation encoding="application/x-tex">35\%</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8056em;vertical-align:-0.0556em;"></span><span class="mord">35%</span></span></span></span></span>, Rent <span class="math-inline" data-latex-source="25\%" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>25</mn><mi mathvariant="normal">%</mi></mrow><annotation encoding="application/x-tex">25\%</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8056em;vertical-align:-0.0556em;"></span><span class="mord">25%</span></span></span></span></span>, Marketing <span class="math-inline" data-latex-source="20\%" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>20</mn><mi mathvariant="normal">%</mi></mrow><annotation encoding="application/x-tex">20\%</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8056em;vertical-align:-0.0556em;"></span><span class="mord">20%</span></span></span></span></span>, Technology <span class="math-inline" data-latex-source="12\%" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>12</mn><mi mathvariant="normal">%</mi></mrow><annotation encoding="application/x-tex">12\%</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8056em;vertical-align:-0.0556em;"></span><span class="mord">12%</span></span></span></span></span>, Miscellaneous <span class="math-inline" data-latex-source="8\%" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>8</mn><mi mathvariant="normal">%</mi></mrow><annotation encoding="application/x-tex">8\%</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8056em;vertical-align:-0.0556em;"></span><span class="mord">8%</span></span></span></span></span>. If Technology spend rises by <span class="math-inline" data-latex-source="25\%" data-display-mode="false" contenteditable="false"><span class="katex"><span class="katex-mathml"><math xmlns="http://www.w3.org/1998/Math/MathML"><semantics><mrow><mn>25</mn><mi mathvariant="normal">%</mi></mrow><annotation encoding="application/x-tex">25\%</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8056em;vertical-align:-0.0556em;"></span><span class="mord">25%</span></span></span></span></span> without changing the original base amount, the new Technology spend becomes:
Option A
Rs 3.12 lakhs
Option B
Rs 3.36 lakhs
Option C — Correct answer
Rs 3.60 lakhs
Correct choice.
Option D
Rs 3.84 lakhs
Explanation
Original Technology spend $=12\%$ of $24=2.88$ lakhs. After a $25\%$ rise, new spend $=2.88\times1.25=3.6$ lakhs.