A person saves 33 of his income. If the saving increases by 22% and the expenditure increases by 10%, then the percentage increase in his income is:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 14%
Let the income be 300x.
Savings = 1/3 × 300x = 100x.
Expenditure = 200x.
Savings increased by 22%.
New savings = 100x × 122% = 122x.
Expenditure increased by 10%.
New expenditure = 200x × 110% = 220x.
New income = 220x + 122x = 342x.
% increase in the income = (342x - 300x)/300x × 100 = 14%.