Anu spends 68% of her monthly income. If her monthly income increases by 20% and her monthly savings increase by 9(3/8)% then the percentage increase in her monthly expenditure is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 25%
Let the initial salary of Anu be 100.
Expenditure = 68
Savings = 32
If her monthly income increases by 20%, income = 120
If her monthly savings increase by 9(3/8)%, savings = 32 × (100 + 9(3/8))
⇒ 35
Expenditure = Income - Savings
⇒ 120 - 35
⇒ 85
Required percentage change = ((85 - 68)/68) × 100
⇒ 1700/68
⇒ 25%