The table shows the income (rupees lakh) and percentage profit of a company from 2017 to 2022.
| Year | Income | Profit (%) |
|---|---|---|
| 2017 | 120 | 7.5 |
| 2018 | 160 | 15 |
| 2019 | 130 | 22.5 |
| 2020 | 170 | 17.5 |
| 2021 | 190 | 20 |
| 2022 | 150 | 27.5 |
Approximately what was the average expenditure during the years from 2017 to 2022?
The average expenditure is about 130 lakh, so the answer is 130 lakh.
Profit percent is profit as a fraction of expenditure, so income equals expenditure times one plus profit rate.
So expenditure equals income divided by one plus the profit rate for each year.
This gives roughly 111.6, 139.1, 106.1, 144.7, 158.3 and 117.6 lakh for the six years.
Their sum is about 777.3 lakh.
Dividing by 6 gives about 129.5 lakh, which rounds to 130 lakh.
Profit is calculated on cost, so expenditure is recovered by dividing income by one plus the profit rate, not by subtracting a percentage of income.
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