The bar graph given below shows the percentage distribution of the total expenditures of a company under various expense heads during 2003.

Percentage Distribution of Total Expenditure of a Company

The expenditure on the interest on loans is by what percent more than the expenditure on transport?

The expenditure on the interest on loans is by what percent more than the expenditure on transport?

A.

5%

B.

10%

C.

20%

D.

40%

Correct answer is D

Let the total amount of expenditures be Rs. x.

Then, the expenditure on interest on loans = Rs. (17.5% of x) = Rs. ( 17.5/100 x )

and the expenditure on transport = Rs. (12.5% of x) = Rs. ( 12.5/100 x )

Therefore difference between the two expenditures = Rs. ( 17.5x/100 - 12.5x/100 )

= Rs. ( 5x/100 )

and so, the required percentage = ( (5x/100)/(12.5x/100) x 100 ) % = 40%.