Question

Mohan’s expenditure and savings are in the ratio 7 : 3. His income increases by 20% . If his saving also increases by 12%, by how much percentage would his expenditure increases?
A) 16.85%
B) 28.85%
C) 26.85%
D) None of these

Answer 1

Answer:

Mohan’s expenditure and savings are in the ratio 7 : 3. His income increases by 20% . If his saving also increases by 12%,

His expenditure would increase by 23.43 %

Option D) None of these is correct

Step-by-step explanation:

Let say Mohan income = 100X

expenditure : Savings :: 7:3

Expenditure = (7/(7+3) )* 100X = 70X

Savings = (3/(7+3) )* 100X = 30X

Income increased by 20 %

New Income = 100 X  + (20/100) * 100X = 120X

Saving Increased by 12%

New Saving = 30X  + (12/100)*30X = 33.6X

New Expenditure = New Income - New Saving

=>New Expenditure =  120X - 33.6X

=> New Expenditure =  86.4X

Increase in expense = 86.4X - 70X = 16.4X

% Increase in expenditure = (16.4X/70X) * 100 = 23.43 %

Option D) None of these is correct