The income of a broker remains uncharged though the rate of commission is increased from 4 % to 5 % the percentage of a slump in business is_______?

A. 8 %
B. 1 %
C. 20 %
D. 80 %

Explanation:

Let the business value changes from x to y.

Then 4 % of x = 5 % of y of 4/100 × x = 5/100 × y

or y = 4/5 x.

Change in business = (x – 4/5 x) = 4/5 x.

Percentage slump in business

= (1/5 x ×1/x × 100)% = 20%

Correct Answer: 20 % ✔

Last Updated: February 07, 2020