A gardener increased the rectangular garden by increasing its length by 40% and decreasing its width by 20%. The area of the new garden:

Answer: Option B

Let original area of the garden was 100 square unit.
Increase or decrease in area can be easily determined by this graphic:
100 == 40% up length ==> 140 == 20% down width ==> 112 (Final Area)
So, there is 12% increase in area of the garden.