In a town, 60% of residents own a bicycle and 40% own a car. If 20% of residents own neither, what percentage of residents own both a bicycle and a car?

Answer and explanation

Correct answer: A. 20%

  1. Step 1: By the principle of inclusion-exclusion, Total = B + C - (B and C) + Neither.
  2. Step 2: 100% = 60% + 40% - Both + 20%.
  3. Step 3: 100% = 120% - Both.
  4. Step 4: Both = 120% - 100% = 20%.
Answer
20%.
Why not the others: 25% computes (60 - 40) + 5; 15% is an arithmetic error; 30% forgets to include the 20% who own neither.

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