# The annual income of Ralph is 25 percent less than the annual income of Mike. Calculate the increase in the annual income of Mike in terms of percentage as compared to Ralph.

Hello, I have a great problems on math. I cannot solve this GMAT problem quickly. Please help.
The annual income of Ralph is 25 percent less than the annual income of Mike. Calculate the increase in the annual income of Mike in terms of percentage as compared to Ralph.

Which one is the correct option?

a. 10
b. 20
c. 30
d. 40
e. None of the above

Thanks.

The annual income of Ralph is 25 percent less than the annual income of Mike. Calculate the increase in the annual income of Mike in terms of percentage as compared to Ralph.

It’s a very easy question. let’s see, how do I solve this problem?

Explanation:

Let \$100 be the annual income of Mike.
Now, according to the data given in the question, annual income of Ralph is less than
the annual income of Mike by 25 percent.
∴ 25% of 100 = 25
Hence, we can say that the annual income of Ralph is \$75, when annual income of Mike is \$100.
But, we have to find the percentage increase in the annual income of Mike as compared to annual income of Ralph.
∴ Percentage increase in annual income of Mike = 100-75 = 25%.
But, neither of the given options represents this value.
Hence, the correct answer is option e.

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