The ratio of expenditure to savings of a woman is 5:1. If her income and expenditure are increased by 10% and 20%, respectively, then find the percentage change in her savings.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 40%
Calculation:
Income = expenditure + saving
⇒ (6 = 5 + 1) × 100
⇒ 600 = 500 + 100
Now, income is increased by 10% and expenditure is increased by 20%.
= 600 × 110% = 500 × 120% + x
⇒ 660 = 600 + x
⇒ x = 60
Percentage change in saving = (100 - 60) / 100 = 40%
:. The correct answer is 40%.