Arithmetichard · Past Paper
A person saves 20% of his income. If his income increases by 20% and he still saves the same amount of money, find the percentage increase in his expenditure.
A20%
B25%
C30%
D35%
✓ Correct Answer: B — 25%
Inc=100, Sav=20, Exp=80. New Inc=120, Sav=20 (constant), New Exp=100. Increase in Exp = 20. % Increase = (20/80)*100 = 25%.
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