Question

5. Raghav spends 80% of his income. If
his income increases by 12% and the
savings decrease by 10%, then what
will be the percentage increase in his
expenditure?​

Answer 1

Given:

Raghav spends 80% of his income.

To find:

If his income increases by 12% and the savings decrease by 10%, then what will be the percentage increase in his expenditure?​

Solution:

From given, we have

Raghav spends 80% of his income.  

Let the income of Raghav be = Rs. 100

Therefore, his expenditure will be = Rs. 80

And his savings will be = Rs. 20

His income increases by 12% and the savings decrease by 10%

12% = 12/100 = 0.12  

Therefore, income = Rs. 112

Savings = 20 × 90/100 = Rs. 18

Expenditure = 112 - 18 = 94

Thus the increment in his expenditure = 94 - 80 = Rs. 14

The percentage increment in expenditure = 14/80 × 100 = Rs. 20