Question

Peter saves 25% of his salary. When his salary increased his monthly expenditure increases by 20% while his savings remained the same as before. What is the percentage increase in his income? (a) 20% (b) 25% (c) 15% (d) 10% (e) None of these
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Answer 1

Step-by-step explanation:

let the income be rs. 100

savings = rs. 25

expenditure = rs 75

increase in expenditure is 20%

= 20% of 75+ 75

= rs.90 (new expenditure)

savings= rs.25

Therefore,

new income = new savings + new expenditure

                                      = 25+ 90

                                      = Rs.115

% increase in his income = (115-100)/100 * 100

                                         =  15%

therefore,answer= c) 15%