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Ramesh saves 25% of his salary. Next year he increases his expenses by 20% but his savings remains the same. what is the % increase in his salary next year?
1. 15%
2. 25%
3. 20%
4. 28%
5. 19%

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Correct Answer - Option 3 : 20%

GIVEN: 

savings = 25%

the increase is expenditure next year = 20 %

EXPLANATION:

let his salary be 100 

\(savings = 25, \space expenditure =75\\next\space year's\space expenditure= \frac{6}{5}\times 75= 90 \\now ,\space 75\% of \space salary= 90\\increased\space salary=\frac{90}{75}\times 100=120 \\\%\space increase= \frac{120-100}{100}\times 100=20\%\)

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