Question

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?

Answer 1

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