Anu spends 80% of his income. If his income increases by 12% and the savings decrease by 10% then what is the percent increase in the expenditures?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 17.5%.
Let original income = ₹100
Expenditure = 80% of 100 = ₹80
Savings = ₹20
New income = 12% increase = ₹112
New savings = 10% decrease = ₹18
New expenditure = ₹112 − ₹18 = ₹94
% increase in expenditure = = 17.5%