Raghav spends 80% of his income. If his income increases by 12% and the savings decrease by 10%, then what will be the percentage increase in his expenditure?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 17.5
Explanation:
Let income be 100.
Expenditure = 80
Savings = 20
I : E : S = 5 : 4 : 1
After increasing the income
I = 112
E = 80 + x%
S = 18
⇒ I = E + S
⇒ 112 - 18 = E ⇒ E = 94
(14 / 80) × 100 = 140/8 = 17.5%