Multiple choice

If a family spends on food, housing and clothing in the rate of 5 : 3 : 2 and experiences the rise in prices of these heads by 40, 30 and 20 percent respectively, the family budget will be increased by ________.

  1. 33%

  2. 40%

  3. 37%

  4. none of the above
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A Correct answer
Explanation

Weighted average increase: (5*40 + 3*30 + 2*20) / (5+3+2) = (200 + 90 + 40) / 10 = 330 / 10 = 33%.

AI explanation

Let the total initial budget be 10, so the amounts spent on food, housing, and clothing are 5, 3, and 2 respectively. The new costs become 7 for food (a 40% increase on 5), 3.9 for housing (a 30% increase on 3), and 2.4 for clothing (a 20% increase on 2). The total new budget is 13.3, which is an increase of 3.3 over the original 10, yielding a 33% increase.

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