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18 November, 04:10

From 1995 to 2000 the cost of food increased by 53% in a certain city, the cost of housing increased by 40%, and the cost of transportation increased by 34%. If the average salaried worker spent 28% of his or her income on food, 35% on hosing, and 14% on transportation, what is the combined percentage increase in the cost of these items?

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  1. 18 November, 05:51
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    Assuming the worker has the same salary of $ 100 from 1995 to 2000

    at 1995

    food cost = 100 (0.28) = 28

    housing cost = 100 (0.35) = 35

    transport cost = 100 (0.14) = 14

    total cost = 77

    then an increase

    food cost = 28 (1.53) = 42.84

    housing cost = 35 (1.40) = 49

    transport cost = 14 (1.34) = 18.76

    total cost = 110.6

    total % increase = [ (110.6 - 77) / 77] x 100

    tota % increase = 43.64 % increase
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