Question

Rekha spends 75% of her monthly income. If her income increases by 15% and still she saves the same amount as before, then what is the percentage increase in her expenditure?
1. 20
2. 15
3. 25
4. 18

Answer 1

Correct Answer - Option 1 : 20

Given:

Rekha spends 75% of her monthly income.

Her income increases by 15% and still,

She saves the same amount as before.

Formula Used:

Income = Expenditure + Savings

Calculation:

Let the income of Rekha be Rs. 100

She spends 75% of 100

Rekha's Expenditure = 75/100 × 100

⇒ Rekha's Expenditure = 75      ----(I) 

Rekha's savings = 100 – 75

⇒ Rekha's saving = Rs. 25

Now her income increased by 15%,

⇒ 100 + 15% of her income

⇒ 100 + 15/100 × 100

⇒ Rs. 115

Still Rekha's saving is still Rs. 25 

Then her expenditure is,

⇒ 115 – 25 

⇒ Rs. 90      ----(II)

Her increase in expenditure,

⇒ 90 – 75

⇒ Rs. 15

Percent increase in Expenditure = Increase/Expenditure × 100

⇒ Percent increase in Expenditure = 15/75 × 100

⇒ Percent increase in Expenditure = 20%

∴ The percent increase in her expenditure is 20%.