A person saves \(x\) % of her income. If her income increases by 26% and the expenditure increases by 20%, then her savings increase by 50%. What is the value of \(x\) ?
Answer & explanation
Correct answer: option 3
Let Income = 100
Savings = Rs. \(x\)
Expenditure = 100 - \(x\)
ATQ,
Income increased = 100 × 26% = 26
Expenditure Increased = (100 - \(x\) ) × 20%
Saving Increased = \(x\) × 50%
Now,
Income = Expenditure + Savings
26 = {(100 - \(x\) ) × 20%} + {\(x\) × 50%}
26 = 20 - {\(x\) × 50% - \(x\) × 20%}
26 - 20 = \(x\) × 30%
6 = \(x\) × 30%
\(x\) = 20