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In a hostel the rent per room is increased by 20%. If number of rooms in the hostel is also increased by 20% and the hostel is always full, then what is the percentage change in the total collection at the cash counter?

In a hostel the rent per room is increased by 20%. If number of rooms in the hostel is also increased by 20% and the hostel is always full, then what is the percentage change in the total collection at the cash counter? Correct Answer 44%

Let initial rent be rs 10 And initial rooms be 10 So initial collection = 10*10 = Rs 100 Now new rent = 10 + 20% of 10 = 12 New no of rooms = 10 + 20% of 10 = 12 So new collection = 12*12 = 144 % change in collection = (144-100)/100*100 = 44%

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