A spends 68% of his monthly income. If A's monthly income increases by 25% and his monthly saving increases by 15%, then the percentage increase in his monthly expenditure will be:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 29%.
Let A's income = 100
Expenditure = 68
Savings = 100 - 68 = 32
New income = 125
Savings = 32 × (115/100) = 36.80
Expenditure = 125 - 36.80 = 88.20
Increase in expenditure = 88.20 - 68 = 20.20
Required percentage = (20.2/68) × 100 =
Therefore, the percentage increase in his monthly expenditure will be .