A restaurant spends one quarter of its monthly budget for rent and quarter of the rest for food and beverages. What percentage of the budget does the restaurant spend for food and beverages? Pick one.
A) 23.5 % B) 32.5 % C) 35 % D) 18.75 % E) 20 %

Rationale: spend on rent = 1 / 4 spend on food and beverage = 1 / 4 of remaining = 1 / 4 * 3 / 4 = 3 / 16 so 3 / 16 = 18.75 % d is the answer
Answer: D