Question

Mira’s expenditure and savings are in the ratio 3 : 2. Her income increases by 10%. Her expenditure also increases by 12%. By how much % do her savings increase ? 

(a) 7% 

(b) 9% 

(c) 10% 

(d) 13%

Answer 1

(a) 7%

Let Mira’s expenditure and savings be 3x and 2x respectively

Then, her income = 5x

Increased income =\(\frac{110}{100}\) x 5x = 5.5x

Increased expenditure = \(\frac{112}{100}\) x 3x = 3.36x

\(\therefore\) Increased savings = 5.5x – 3.36x = 2.14x

\(\therefore\) % increase in savings = \(\big(\frac{2.14X-2X}{2X}\times100\big)\)%

= \(\big(\frac{0.14X}{2X}\times100\big)\)% = 7%