The ratio of expenditure to saving of a person is 7 : 3. If the income increases by 12% and the expenditure increases by 8%, then by what percentage his savings will increase? (Correct to 2 decimal places)
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 21.33 Percent
Let, expenditure be 700x and savings be 300x
Then, income = 1000x
Now, new income = 1000x × 112% = 1120x
And, new expenditure = 700x × 108% = 756x
Hence, savings = 364x
Required percentage = (64x/300x) × 100 = 21.33%