A person can save 25% of his income. If his income increases by 9\(\frac{1}{11}\)% and still he saves the same amount as before, the percentage increase in his expenditure is
Answer & explanation
Correct answer: option 3
If the Income is assumed to be 4
Then, savings = 1
expenditure = 3
Increased income = \(\frac{12}{11}\) x 4 = \(\frac{48}{11}\)
Savings = 1
Increased Expenditure = 4\(\frac{4}{11}\) - 1 = 3\(\frac{4}{11}\)
Increment in expenditure = \(\frac{37}{11}\) - 3 = \(\frac{4}{11}\)
Percentage increase in expenditure = \(\frac{\frac{4}{11}}{3}\) x 100 = 12.12%