Question

The average income of a real estate agent was 1.5 lakhs per month. To increase the sales of plots next year, he decided to tie up with another real estate company for getting more income by sale of more plots to customers. After this his average income increased to 2.1lakhs per month. What was the percentage increase in his annual income?

• A. 40%
• B. 45%
• C. 42%
• D. 48%

Answer 1

The Correct Option is A

Calculating the Percentage Increase in Annual Income 

Step 1: Define the Initial Annual Income

The initial monthly income is Rs. 1.5 lakhs. The annual income is:

\[ 1.5 \times 12 = 18 \text{ lakhs} \]

Step 2: Define the New Annual Income

The new monthly income is Rs. 2.1 lakhs. The annual income becomes:

\[ 2.1 \times 12 = 25.2 \text{ lakhs} \]

Step 3: Calculate the Percentage Increase

The percentage increase is given by:

\[ \frac{\text{New Income} - \text{Old Income}}{\text{Old Income}} \times 100 \]

Substituting the values:

\[ \frac{25.2 - 18}{18} \times 100 \]

\[ \frac{7.2}{18} \times 100 = 40\% \]

Final Answer:

Thus, the percentage increase is 40% (Option A).