The ratio of expenditure and savings is 3 : 2 . If the income increases by 15% and the savings increases by 6% , then by how much percent should his expenditure increases?
Aptitude
Alligation or Mixture
Choose an option
-
A25
-
B21
-
C12
-
D24
Answer
Correct Answer: 21
Explanation
Given:
- Expenditure : Savings = 3 : 2
- Income = Expenditure + Savings → 3 + 2 = 5 units
Let original income = Rs. 100
- Then, Expenditure = (3/5) × 100 = Rs. 60
- Savings = (2/5) × 100 = Rs. 40
After increase:
- Income increases by 15% → 100 + 15 = Rs. 115
- Savings increase by 6% → 40 + 6% of 40 = Rs. 42.40
New expenditure = New income – New savings
Expenditure = 115 - 42.40 = Rs. 72.60
Old expenditure = Rs. 60
Increase in expenditure = 72.60 - 60 = 12.60
% Increase = (12.60 / 60) × 100 = 21%
Answer: 21%