Sonu saves 15% of her income. If her income increases by 20% and she still saves the same amount as before, then what is the percentage increase in her expenditure? (correct to one decimal place)
Answer & explanation
Correct answer: option 1
Let the income of Sonu be Rs. 100x
Savings of Sonu = 100x ×\(\frac{15}{100}\)= 15x
Expenditure of Sonu = 100x – 15x = 85x
New income of Sonu = 100x × \(\frac{120}{100}\) = 120x
If savings amount same, then new expenditure = 120x – 15x = 105x
Her expenditure increased by = 105x – 85x = 20x
Her expenditure increased by = \(\frac{20x}{85x}\) × 100 = 23.52%
= 23.5% (approx)