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chetan2u
The proportion of annual expense on food in a household remains constant even after the annual expense on food increases by 20%. What would be the increase in Total annual expense?

(A) 0%
(B) 10%
(C) 20%
(D) 25%
(E) Cannot be determined


solution:

lets assume the annual expense to be 100, then assume the food expense be 20.
now it says that after the increase on food expense by 20% the proportion remains the same.

then
let the new household expense be x

20/100= (20*120/100)/x


x=120.

that means the new total expense is also increased by 20%.

So, C is the correct solution.
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