Suresh's expenditure and savings are in the ratio of 3 : 1. His income increases by 25%. If his savings increase by 20%, then by…

Question

Suresh's expenditure and savings are in the ratio of 3 : 1. His income increases by 25%. If his savings increase by 20%, then by how much percentage does his expenditure increase?

1. A. 2623\% (Correct answer)
2. B. 2723\%
3. C. 2523\%
4. D. 2823\%

Correct Answer

Option A — 2623\%

Detailed Solution & Explanation

The correct answer is $26\tfrac{2}{3}\%$.

Key Points

• Let expenditure $=3x$, savings $=x$, income $=4x$. New income $=4x\times1.25=5x$; new savings $=x\times1.2=1.2x$.
• New expenditure $=5x-1.2x=3.8x$; increase $=0.8x$.
• Percentage increase $=\dfrac{0.8x}{3x}\times100=\dfrac{80}{3}=26\tfrac{2}{3}\%$.