Sunita's savings are equal to 18% of her expenditure. If her income increases…
2022
Sunita's savings are equal to 18% of her expenditure. If her income increases by 35% and expenditure increases by 38.6%, then by what percentage does her savings increase or decrease?
- A.
Decrease by 14.4%
- B.
Increase by 15%
- C.
Decrease by 13.04%
- D.
Increase by 14.6%
Attempted by 112 students.
Show answer & explanation
Correct answer: B
Step 1: Set initial values.
Let Expenditure = 100.
Savings = 18% of Expenditure = 18.
Income = Expenditure + Savings = 100 + 18 = 118.
Step 2: Calculate new values after increase.
New Income = 118 + 35% of 118 = 118 * 1.35 = 159.3.
New Expenditure = 100 + 38.6% of 100 = 138.6.
Step 3: Calculate new savings and percentage change.
New Savings = New Income - New Expenditure = 159.3 - 138.6 = 20.7.
Increase in Savings = New Savings - Original Savings = 20.7 - 18 = 2.7.
Percentage Increase = (Increase / Original) * 100 = (2.7 / 18) * 100 = 15%.
Final Answer: Option B