Surbhi spends 75% of her income. If her income increases by 20% and savings decrease by 1%, then the percentage increase in her expenditure is: (in percentages)
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 27.
Income - expenditure = savings
Lets assume his income = 100x
Expenditure = 100x × 75/100 = 75x
Savings = 100x - 75x = 25x
His new income after 20% increase = 120x
New Savings = 25x (99/100) = 24.75x
So, expenditure = 120x - 24.75 = 95.25x
Required percentage = (95.25x - 75x)/75x × 100 = 27%