Aman spends 74% of his income. If his expenditure increases by 30% and savings increase by 25%, then by what percentage will his income increase?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 28.7%
Income = Expenditure + Savings
Let's assume his initial income is 100
100 = 74 + 26
Now we have given his expenditure is increased by 30% and savings is increased by 25%
Expenditure = 74 × 130/100 = 96.2
Savings = 26 × 125/100 = 32.5
Income = 96.2 + 32.5 = 128.7
So, increased in income = 128.7 - 100 = 28.7%