Multiple choice

Directions: Read the statement and choose the correct answer. Joe lost his part-time job which reduced the net family income by 20%. His wife Janice decided to work overtime to compensate for the lost income. Other things being equal, by what percentage her net salary must increase in order to arrive at the same net family income as they had before Joe lost his job?

  1. 25%

  2. 30%

  3. 35%

  4. 40%
Reveal answer Fill a bubble to check yourself
A Correct answer
AI explanation

Assume the total family income is 100 units, with Joe earning 20 units and Janice earning the remaining 80 units. Janice needs to make up the 20 unit deficit by increasing her own salary of 80 units. The required percentage increase is (20 / 80) multiplied by 100, which equals 25%. The result is 25%.

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