Question

A person could save 10% of his income. But 2 years later, when his income increased by 20%, he could save the same amount only as before. By how percentage has his expenditure increased?

• A. $22\frac{2}{9}\%$
• B. $23\frac{1}{3}\%$
• C. $24\frac{2}{9}\%$
• D. $25\frac{2}{9}\%$
• E. None of these

Answer 1

The correct option is A

$22\frac{2}{9}\%$

Let income be Rs 100
Expenditure amount $=100\times \frac{90}{100}=Rs90$
Now, income increased by 20% $=100\times \frac{120}{100}=Rs120$
Expenditure amount = (120 - 10)= Rs 110
Increase in expenditure = 110 - 90 = Rs 20
Increase in % of expenditure $=\frac{20}{90}\times 100$
$=\frac{200}{9}=22\frac{2}{9}\%$