Practicing Success
The ratio of income and expenditure of a person is 8 : 5. If her income increases by 25% and her expenditure increases by 28%, then what is the percentage increase in her savings? |
18% 20% $16\frac{2}{3}$% $22\frac{1}{2}$% |
20% |
25% = \(\frac{1}{4}\) & 28% = \(\frac{7}{25}\) Ratio of , Income : Expenditure = 8 : 5 Let Income = 800 , Expenditure = 500 Saving = 800 - 500 = 300 New Income = 800 + \(\frac{1}{4}\) × 800 = 1000 New Expenditure = 500 + \(\frac{7}{25}\) × 500 = 500 + 140 = 640 New saving = 1000 - 640 = 360 Percentage increase = \(\frac{360 - 300}{300}\) × 300 = 20% |