Multiple choice

Peter could save 10% of his income. But two years later when his income is increased by 20%, he could save the same amount only as before. By how much percent has his expenditure increased?

  1. 22 %
  2. $22\, \displaystyle \frac{2}{9}$ %
  3. $23\, \displaystyle \frac{1}{3}$ %

  4. 24 %
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let income be 100, savings 10, expenditure 90. New income = 120. Savings remain 10, so new expenditure = 110. Increase in expenditure = 20. Percentage increase = (20/90) * 100 = 200/9 = 22.22%.

AI explanation

Let the initial income be 100, so his initial saving is 10 and his expenditure is 90. After two years, his income increases by 20 percent to 120, but his saving remains 10, making his new expenditure 110. The increase in expenditure is 110 minus 90, which equals 20. The percentage increase in expenditure is 20 divided by 90 multiplied by 100, resulting in 22 and two-ninths percent.

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