Suresh’s expenditure and savings are in the ratio of 3 : 1. His income increases by 25%. If his savings increase by 20%, then by how much percentage does his expenditure increase?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. %.
The ratio of Suresh’s expenditure and savings = 3 : 1
Let's assume Suresh's initial expenditure is ₹300 and his initial savings is ₹100.
So, his initial income = 300 + 100 = ₹400
His new income = 400 + (25/100) × 400 = 400 + 100 = ₹500
His new savings = 100 + (20/100) × 100 = 100 + 20 = ₹120
New expenditure = 500 - 120 = ₹380
Increase in expenditure = 380 - 300 = ₹80
Percentage increase = (80/300) × 100 = 26.66...% = 26.67% (approx)
So, Suresh's expenditure increased by approximately 26.67%.