Sudha saves 15% of her income. If her expenditure increases by 20% and savings increase by 60%, then by what percent has her income increased?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 26%.
Income = Expenditure + Savings
Saving= 15% and Expenditure = 85%
Expenditure increases by 20% and savings increase by 60%,
New Expenditure = 85 × 1.2 = 102%
New savings = 15 × 1.6 = 24%
New Income = 102 + 24 = 126%
Percentage increase
= (126 – 100)/100 × 100
= 26%