The expenditure on the cost of living of a man and his family is 60% of his salary. He gets two increment of 30% and 60% in his salary. If his saving increases by 250% of his initial saving, then the new cost of living expenditure is what percentage (rounded off to the nearest integer) of the increased salary?
Answer & explanation
Correct answer: option 1
Let initial Income = 100X
Expenditure = 60X
Saving = Income - Expenditure = 100X - 60X = 40X
Now , New Income
= 100X × \(\frac{130}{100}\) × \(\frac{160}{100}\)
= 208X
New Saving = 40X + 250% of 40X
= 40X + 100X = 140X
Expenditure = 208X - 140X = 68X
Required Percentage = \(\frac{68X}{140X}\) × 100 = 32.692%
= 32.7%