Discussion
If A's income is 25% more than B's income, then B's income is less than that of A's by
Answer: C
B's income is less than A's by 20%.
Take B's income as 100. Then A's income is 125, and the difference of 25 must be measured against A's income:
\[ \frac{25}{125} \times 100 = 20\% \]
The trap is to answer 25%, measuring against B instead of A, but that is not offered. \(16\frac{2}{3}\%\) is the answer for a 20% excess, not a 25% one, and 12% does not follow.
The general rule: if A is r% more than B, then B is less than A by \(\frac{r}{100 + r} \times 100\%\), here \(\frac{25}{125} \times 100 = 20\%\).
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