Q. Mrs. Joshi’s expenditure and savings are in the ratio of 3: 2. Her income increases by 10%. Her expenditure also increases by 20%. How much percent do her savings change?

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10%

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11%

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Solution

The correct option is C 10%
Explanation:

Let Mrs. Joshi’s saving $= 3 s$

Let Mrs. Joshi’s expenditure $= 2 s$

Therefore his initial total income becomes $5 s$

Now her income has increased by $10 %$

So New income will be $5.5 s$

Her expenditure increases by $20 %$ and therefore Her new expenditure $= 3 s \times 120 % = 3.6 s$

Therefore her new saving is $= 5.5 s - 3.6 s = 1.9 s$

Percentage change in savings

$= \frac{(1.9 s - 2 s)}{2 s} = \times 100 = 10 %$

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