The expenditure on the interest on loans is by what perce...
The bar graph given below shows the percentage distribution of the total expenditures of a company under various expense heads during 2003.
Percentage Distribution of Total Expenditure of a Company
The expenditure on the interest on loans is by what percent more than the expenditure on transport?
5%
10%
20%
40%
Correct answer is D
Let the total amount of expenditures be Rs. x.
Then, the expenditure on interest on loans = Rs. (17.5% of x) = Rs. ( 17.5/100 x )
and the expenditure on transport = Rs. (12.5% of x) = Rs. ( 12.5/100 x )
Therefore difference between the two expenditures = Rs. ( 17.5x/100 - 12.5x/100 )
= Rs. ( 5x/100 )
and so, the required percentage = ( (5x/100)/(12.5x/100) x 100 ) % = 40%.
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