The expenditure of Sudha is 175% more than her savings. If her expenditure decreases by 12% and savings increase by 40.5%, then by what percent does her income increase?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 2%
Let savings = S
expenditure = 2.75S
income = 3.75S.
New expenditure = 2.75S × 0.88 = 2.42S
new savings = S × 1.405 = 1.405S
new income = 3.825S
Increase = (3.825S − 3.75S) / 3.75S × 100 = 2%