Radha saves x% of her income. If her income increased by 28% and the expenditure increases by 20%, then her savings increase by 40%. What is the value of x?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e 40 .
Let's assume the income of Radha = 100
Savings of Radha = 100 × x/100 = x
Expenditure of Radha = 100 - x
After 28% increased, the income of Radha = 100 × (100 + 28)/100 = 128
After 20% increased, the expenditure = (100 - x) × (100 + 20)/100 = 120 - (6x/5)
After 40% increased, the savings = x × (100 + 40)/100 = 7x/5
Income - Expenditure = Savings
⇒ 128 - 120 + (6x/5) = 7x/5
⇒ 8 = x/5
⇒ x = 40