Question 66

Renu saves 30% of her income. If her savings increases by 30% and the expenditure increases by 25%, then the percentage increase in her income is:

Solution

Let her income be Rs. $$100x$$

=> Savings = Rs. $$30x$$ and expenditure = Rs. $$70x$$

Now, new savings after 30% increase = $$30x\times\frac{130}{100}=Rs.$$ $$39x$$

New expenditure = $$70x\times\frac{125}{100}=Rs.$$ $$87.5x$$

=> New income = $$39x+87.5x=Rs.$$ $$126.5x$$

$$\therefore$$ % increase in income = $$\frac{126.5x-100x}{100x}\times100=26.5\%$$

=> Ans - (C)

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