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Select the correct answerA person can save 25% of his income. If his income increases by 20% and still he saves the same amount as before, the percentage increase in his expenditure is?Options26 2/𝟑%25%25 1/𝟑%24%

Question

Select the correct answerA person can save 25% of his income. If his income increases by 20% and still he saves the same amount as before, the percentage increase in his expenditure is?Options26 2/𝟑%25%25 1/𝟑%24%

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Solution 1

Let's solve this step by step:

  1. Let's assume the initial income of the person is 100.So,hesaves25100. So, he saves 25% of 100, which is 25.Thismeanshisexpenditureis25. This means his expenditure is 75 (100−100 - 25).

  2. Now, his income increases by 20%, so his new income is 120(120 (100 + 20% of $100).

  3. But he still saves the same amount as before, which is 25.So,hisnewexpenditureis25. So, his new expenditure is 95 (120−120 - 25).

  4. Now, we need to find the percentage increase in his expenditure. The formula to calculate percentage increase is (New Value - Old Value) / Old Value * 100%.

  5. Substituting the values in the formula, we get (95 - 75) / 75 * 100% = 26.67% or 26 2/3%.

So, the correct answer is 26 2/3%.

This problem has been solved

Solution 2

Let's solve this step by step:

  1. Let's assume the initial income of the person is 100.So,hesaves25100. So, he saves 25% of 100, which is 25.Thismeanshisexpenditureis25. This means his expenditure is 75 (100−100 - 25).

  2. Now, his income increases by 20%, so his new income is 120(120 (100 + 20% of $100).

  3. Even after the increase in income, he still saves the same amount as before, which is 25.So,hisnewexpenditureis25. So, his new expenditure is 95 (120−120 - 25).

  4. Now, we need to find the percentage increase in his expenditure. The formula to calculate percentage increase is (New Value - Old Value) / Old Value * 100%.

  5. Substituting the values in the formula, we get (95 - 75) / 75 * 100% = 26 2/3%.

So, the correct answer is 26 2/3%.

This problem has been solved

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