The ratio of expenditure to savings of Richa is 2 : 1. If her income and expenditure increase by 20% and 15%, respectively, then find the percentage increase in her savings.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 30%.
Given:
The ratio of expenditure to savings of Richa is 2 : 1.
If her income and expenditure increase by 20% and 15%, respectively
Formula used:
Income = Expenditure + Savings
Calculations:
According to the question;
Her income = 2x + x = 3x
Her new income = 1.2 × 3x = 3.6x
Her new expenditure = 1.15 × 2x = 2.3x
Now, new savings = 3.6x - 2.3x = 1.3x
Hence, the increased percentage of savings = [(1.3x - x)/x] × 100 = 30%