Renu saves 30% of her income. If her savings increases by 30% and the expenditure increases by 25%, then the percentage increase in her income is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 26.5
Let income of Renu be 100
Income = Expenditure + Savings
According to question,
Renu saves 30% of her income i.e Savings = 30, Expenditure = 70
If her savings increases by 30% and the expenditure increases by 25% then,
Savings = 30% of 30 + 30 = 39, New expenditure = 25% of 70 + 70 = 87.5
New income = 39 + 87.5 = 126.5
Hence increase is 26.5%