Understanding the Income Relationship
To determine how much less Y's income is compared to X's income, we start with the given information: X's income is 25% more than Y's income.
Step 1: Define Y's Income
- Let Y's income be represented as 100 units (for simplicity).
Step 2: Calculate X's Income
- Since X's income is 25% more than Y's:
- X's income = Y's income + 25% of Y's income
- X's income = 100 + 25% of 100
- X's income = 100 + 25 = 125 units
Step 3: Determine the Difference in Income
- Now, we know:
- Y's income = 100 units
- X's income = 125 units
- To find how much less Y's income is compared to X's:
- Difference = X's income - Y's income
- Difference = 125 - 100 = 25 units
Step 4: Calculate the Percentage Difference
- To find the percentage that Y's income is less than X's:
- Percentage = (Difference / X's income) * 100
- Percentage = (25 / 125) * 100
- Percentage = 20%
Conclusion
Y's income is 20% less than X's income. This calculation shows how to compare two incomes and express the difference as a percentage, which is essential for understanding relative financial positions.