Multiple choice

Last year, an employee used to save 30% of his salary. Now, his salary has increased by 80%, while his savings have increased by 30%. What is the approximate percentage change in his expenditure?

  1. 101% increase

  2. 80% increase

  3. 70% increase

  4. 50% increase

  5. 40% increase
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A Correct answer
Explanation

Let salary = 100, savings = 30, expenditure = 70. New salary = 180. New savings = 30 * 1.3 = 39. New expenditure = 180 - 39 = 141. Percentage change = ((141 - 70) / 70) * 100 = (71 / 70) * 100 = 101.4%.

AI explanation

Assume the original salary is 100, with savings of 30 and expenditure of 70. The new salary is 180, and the new savings are 39. The new expenditure is 180 minus 39, which equals 141. The increase in expenditure is 71, and the percentage increase is 71 divided by 70, which equals a 101% increase.

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