A saves 18% of his income. If his income increases by 41% and he still saves the same amount. Find the percentage increase in his expenditure.
Answer & explanation
Correct answer: option 3
Let the income of A originally be 100
Savings = 18
Expenditure = Income - Savings = 100 - 18
= 82
Now, the Income increases by 41%
New Income = 141
Savings is the same, i.e. 18
Increased Expenditure =Increased Income - Savings = 141 - 18
= 123
Percentage increase in expenditure = $\frac{123-82}{82}$ x 100
= $\frac{41}{82}$ x 100 = 50%