Question:
What is the percentage increase in sales from 2021 to 2025?
What is the percentage increase in sales from 2021 to 2025?
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A quick way to compute this is by simplifying the ratio of the final value to the initial value:
The ratio of sales in 2025 to 2021 is $90 : 40 = 9 : 4$.
The increase is $9 - 4 = 5$ units over an initial value of 4 units.
Since we know that the fraction $1/4 = 25\%$, the fraction $5/4$ will be $5 \times 25\% = 125\%$ directly.
The ratio of sales in 2025 to 2021 is $90 : 40 = 9 : 4$.
The increase is $9 - 4 = 5$ units over an initial value of 4 units.
Since we know that the fraction $1/4 = 25\%$, the fraction $5/4$ will be $5 \times 25\% = 125\%$ directly.
Updated On: Jul 5, 2026
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The Correct Option is C
Solution and Explanation
Step 1: Understanding the Question:
This is a Data Interpretation question involving the calculation of percentage growth over a specified period.
We need to compare the sales data of the starting year (2021) with the final year (2025).
We then compute how much the sales increased in percentage terms relative to the initial value in 2021.
Step 2: Key Formula or Approach:
The percentage increase formula is defined as:
\[ \text{Percentage Increase} = \left(\frac{\text{Final Value} - \text{Initial Value}}{\text{Initial Value}}\right) \times 100\% \]
Here, the initial value is the sales in the year 2021, and the final value is the sales in the year 2025.
Step 3: Detailed Explanation:
$\bullet$ Let us find the values of sales for the years 2021 and 2025 from the given data.
$\bullet$ Sales in the year 2021 $= 40 \text{ lakh rupees}$.
$\bullet$ Sales in the year 2025 $= 90 \text{ lakh rupees}$.
$\bullet$ Next, we find the absolute increase in sales over this period:
\[ \text{Absolute Increase} = \text{Sales in 2025} - \text{Sales in 2021} \]
\[ \text{Absolute Increase} = 90 - 40 = 50 \text{ lakh rupees} \]
$\bullet$ Now, we calculate the percentage increase with respect to the initial sales in 2021:
\[ \text{Percentage Increase} = \left(\frac{50}{40}\right) \times 100\% \]
\[ \text{Percentage Increase} = \frac{5}{4} \times 100\% \]
\[ \text{Percentage Increase} = 1.25 \times 100\% = 125\% \]
Step 4: Final Answer:
The percentage increase in sales from 2021 to 2025 is 125%.
Therefore, the correct option is (C).
This is a Data Interpretation question involving the calculation of percentage growth over a specified period.
We need to compare the sales data of the starting year (2021) with the final year (2025).
We then compute how much the sales increased in percentage terms relative to the initial value in 2021.
Step 2: Key Formula or Approach:
The percentage increase formula is defined as:
\[ \text{Percentage Increase} = \left(\frac{\text{Final Value} - \text{Initial Value}}{\text{Initial Value}}\right) \times 100\% \]
Here, the initial value is the sales in the year 2021, and the final value is the sales in the year 2025.
Step 3: Detailed Explanation:
$\bullet$ Let us find the values of sales for the years 2021 and 2025 from the given data.
$\bullet$ Sales in the year 2021 $= 40 \text{ lakh rupees}$.
$\bullet$ Sales in the year 2025 $= 90 \text{ lakh rupees}$.
$\bullet$ Next, we find the absolute increase in sales over this period:
\[ \text{Absolute Increase} = \text{Sales in 2025} - \text{Sales in 2021} \]
\[ \text{Absolute Increase} = 90 - 40 = 50 \text{ lakh rupees} \]
$\bullet$ Now, we calculate the percentage increase with respect to the initial sales in 2021:
\[ \text{Percentage Increase} = \left(\frac{50}{40}\right) \times 100\% \]
\[ \text{Percentage Increase} = \frac{5}{4} \times 100\% \]
\[ \text{Percentage Increase} = 1.25 \times 100\% = 125\% \]
Step 4: Final Answer:
The percentage increase in sales from 2021 to 2025 is 125%.
Therefore, the correct option is (C).
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