Multiple choice

A person saves 6% of his income. 2 years later, his income will be increased by 15% but the value of his saving remains the same. Find the hike in his expenditure (in approx. percent).

  1. a)13.65%

  2. b)12.45%

  3. c)14.85%

  4. d)15.95%

  5. e) None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let Income = 100, Saving = 6, Expenditure = 94. New Income = 115. Saving remains 6. New Expenditure = 115 - 6 = 109. Hike = (109 - 94) / 94 = 15 / 94 = 0.15957, which is approx 15.95%.

AI explanation

Using the 100 base method, let the initial income be 100 so the saved amount is 6 and the expenditure is 94. After two years, the new income is 115 and the saving remains 6, making the new expenditure 109. The hike in expenditure is 109 minus 94 equals 15; when divided by the original expenditure of 94, this yields a 15.95 percent increase.

Keep practicing — related questions