Question

rajesh saves 5% of his income after 4 years his income is increased by 25% but his saving reamins same. Then find the percentage increased in his expenditure?

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Answer 1

       $\underline{\bold{Answer:}}$

       $26 \text{ o/o}$

       $\underline{\bold{Step-by-step-explaination:}}$

       $\text{Let Rajesh's income be Rs.}100$

$\implies \text{Rajesh's savings}= 100*{\frac{5}{100}} = \text{Rs.}5$

$\implies \text{Rajesh's expenditure}= 100 - 5 = \text{Rs.}95$

       $\text{After 4 years...}$

$\implies \text{Rajesh's new income}= 100+(100*\frac{25}{100}) = 100+25 = \text{Rs.125}$      

       $\text{Rajesh's savings remains the same as before i.e Rs.}5$

$\implies \text{Rajesh's new expenditure} = 125 - 5 = \text{Rs.120}$

       $\text{Increase in Rajesh's expenditure}= \text{New expenditure}- \text{Original expenditure}$

       $\text{Increase in Rajesh's expenditure}= 120 - 95 = \text{Rs.}25$

$\implies \boxed{\text{Percentage Increase in expenditure} = \frac{\text{Increase}}{\text{Original}} * 100}$

$\implies\text{Percentage Increase in expenditure} = \frac{25}{95} * 100$

$\implies\text{Percentage Increase in expenditure} = \frac{5}{19} * 100$

$\implies\text{Percentage Increase in expenditure} = 26.31$

$\implies \text{Option 4. }26 \text{ o/o}$