Question 102

A person can save 25% of his income. If his income increases by 20% and still he saves the same amount as before, the percentage increase in his expenditure is ...........

Solution

Let the initially income of person be Rs.100.

Saving = 100 $$\times \frac{25}{100}$$ = 25

expenditure = 100 -25 = 75

Final income = 100 $$\times \frac{120}{100}$$ = 120

Saving = 25

Expenditure = 120 - 25 = 95

Percentage increment in expenditure = $$\frac{95 - 75}{75} \times 100 = 26\frac{2}{3}$$

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