Last year, the cost of renting an apartment rose by p percent and the

Question

Last year, the cost of renting an apartment rose by p percent and the cost of buying an apartment rose by q percent, where p is greater than q. What was the percentage change in the ratio of the cost of renting an apartment to the cost of buying an apartment, in terms of p and q ?

A. p/q

B. (1 + p)/(1 + q)

C. (p - q)/(100 + q)

D. 100(p - q)/(100 + q)

E. 100(p - q)/(100 + p + q)

A. p/q

B. (1 + p)/(1 + q)

C. (p - q)/(100 + q)

D. 100(p - q)/(100 + q)

E. 100(p - q)/(100 + p + q)

stne · Answer

Let initially the ratio of renting to buying be  \frac{x}{y} ...(i)

After the increase the ratio of renting to buying becomes  \frac{(\frac{100+p}{100})*x}{(\frac{100+q}{100})*y} ...(ii)

\%  change in ratio  \frac{ (ii) -(i)}{(i)}

(\frac{100+p}{100+q}-1)*100

\frac{p-q}{100+q}*100

Ans D

Hope it helps.

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