The proportion of Suresh's spending to saving is 3 : 1. His salary rises by 25%. What percentage of his expenditure will increase if his saving grows by 10%?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 30%.
Income = Expenditure + Savings
Let the expenditure and savings be 30x and 10x
Income = 30x + 10x = 40x
Income is increased by 25% = 125% of 40x = 50x
Savings is increased by 10% = 110% of 10x = 11x
New expenditure = 50x - 11x = 39x
Required increase In the expenditure = [(New expenditure - Old expenditure)/old expenditure] × 100
⇒ [(39x - 30x)/30x] × 100
⇒ 30%