Monika spends 72% of her income. If her income increases by 20% & savings increases by 15%, then her expenditure increases by:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 21.9%.
Let monika's total income be 100
with 20% increase her income is 120
Initial expenditure = 100 × 72% = 72
Initial savings = 100 - 72 = 28
After increasement
New savings = 28 + 28 × 15% = 28 + 4.2 = 32.2
New expenditure = 120 - 32.2 = 87.8
Increase in expenditure = 87.8 - 72 = 15.8
∴ Percentage increase = (15.8/72) 100 = 21.9%