Multiple choice

Ram's expenditure and savings are in the ratio 3 : 2. If his income increases by 14%, his expenditure also increases by 10%. What is the percentage increase in his savings?

  1. 20%

  2. 21%

  3. 23%

  4. 25%

  5. None of the above

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

Let the expenditure and savings be 3x and 2x respectively. Total income = 3x + 2x = 5x Increased income = 5.7x Increased expenditure = 3.3xI Increased savings = 5.7x - 3.3x = 2.4x, i.e. 20% increase So, option (1) is correct.