The ratio of expenditure to savings of a woman is 2 : 1. If her income and expenditure increase by 17% and 13%, respectively, then find the percentage increase in her saving.
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Correct answer: A
Explanation
The correct answer is option 1 i.e. 25%.
Ratio of expenditure : savings = 2 : 1
So for every ₹3 of income, ₹2 is spent, ₹1 is saved.
Assume initial income = ₹3
Expenditure = ₹2 ,Savings = ₹1
Income increases by 17% → New income = ₹3 × 1.17 = ₹3.51
Expenditure increases by 13% → New expenditure = ₹2 × 1.13 = ₹2.26
New saving = ₹3.51 − ₹2.26 = ₹1.25
Old saving = ₹1 , New saving = ₹1.25
Increase = ₹1.25 − ₹1 = ₹0.25
Percentage increase in saving =