Multiple choice

Raghav spends 80% of his income. If his income increases by 12% and the savings decrease by 10%, then what will be the percentage increase in his expenditure?

  1. 20.5

  2. 16

  3. 17.5

  4. 22

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let income be 100. Expenditure = 80, Savings = 20. New income = 112. New savings = 20 * 0.9 = 18. New expenditure = 112 - 18 = 94. Increase in expenditure = 14. Percentage increase = (14 / 80) * 100 = 17.5%.

AI explanation

Let Raghav's total income be 100 units, so his initial expenditure is 80 and his savings are 20. His new income becomes 112, and his new savings decrease by 10% to become 18. His new expenditure is 112 minus 18, which equals 94, making the increase in expenditure 14. The percentage increase in expenditure is (14 divided by 80) multiplied by 100, which equals 17.5%.