The expenditure of Sudha is 125% more than her savings. If her expenditure decreases by 14% and savings increase by 38%, then by what percent does her income increase?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 2%.
Let savings = 100
Expenditure = 100 + 125% of 100 = 225
Income = Expenditure + Savings = 225 + 100 = 325
New expenditure = 225 − 14% of 225 = 225 − (225 × 14 ÷ 100) = 225 − 31.5 = 193.5
New savings = 100 + 38% of 100 = 100 + 38 = 138
New income = 193.5 + 138 = 331.5
Income increase % = [(331.5 − 325) ÷ 325] × 100 = (6.5 ÷ 325) × 100 = 2%