1.  For Company R, if the expenditure had increased by 20% in year 2001 from year 2000 and the company had earned profit of 10% in 2000, what was the Company's income in 2000 (in million US $)?

A. 35.75
B. 37.25
C. 38.5
D. 41.25
E. 42.75

Answer: Option D

Explanation:

Let the expenditure of Company R in 2000 be x million US $.

Then, expenditure of Company R in 2001 








=(120x)million US $.
100

Therefore120x= 45     =>     x = 37.5.
100


i.e., expenditure of Company R in 2000 = 37.5 million US $.

Let the income of Company R in 2000 be I million US $.

Then, 10 =(I - 37.5)x 100   
37.5

    [ Ref %Profit in 2000 = 10%]

 => I - 37.5 = 3.75

    => I = 41.25

i.e., Income of Company R in 2000 = 41.25 million US $.