The ratio of expenditure and savings is 3 : 2 . If the income increase

Question

The ratio of expenditure and savings is 3 : 2 . If the income increases by 15% and the savings increases by 6% , then by how much percent should his expenditure increases?

A) 25 
B) 21
C) 12 
D) 24
E) 34

Vinit800HBS · Accepted Answer

Let the total income be 500

Expenditure = 300
Savings = 200

Now, income increases by 15%. So, Income is 575

Savings increase by 6%. So, savings is 212

So, expenditure must be 575-212 = 363

% increase in expenditure = (363-300)*100/300 = 21%

dharam44

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randomavoidplease · Answer

How do you figure out the total income should be taken as 500 so as to not get any decimals? I had the same approach as you but mine went into decimals.

Vinit800HBS · Answer

The clue is always in the question.

We know that the ratio is 3:2. So, total parts are 5 and thus taking a multiple of 100 i.e. 500 makes more sense.

You can try with 1000 also.

Always look out for ratios or fractions and take the value as multiple of denominators for easier calculations.

Eg. If you have fractions as 2:3 and 4:7

Simple take a multiple of 3 and 7 —> 21 or 210 etc and solve

Hope that helps 😃

ScottTargetTestPrep · Answer

Solution:
 
Assuming income = expenditure + savings, we can let expenditure = $60, savings = $40, and thus income = $100. If income increases by 15%, the new income is now 100 x 1.15 = $115. Similarly, if savings increases by 6%, the new savings is now 40 x 1.06 = $42.4. Therefore, the new expenditure is 115 - 42.4 = $72.6. Therefore, expenditure increases by:

(72.6 - 60) / 60 x 100 = 12.6/6 x 10 = 2.1 x 10 = 21 percent

Answer: B

btsaami · Answer

The ratio of expenditure and savings is 3 : 2 . If the income increases by 15% and the savings increases by 6% , then by how much percent should his expenditure increases?

--> Income(I) = Expenditure(E) + Saving(S)
I= 5x, E=3x, S=2x

We need to find the increase in E. 
Increase in I = Increase in E + Increase in S
Increase in E= 5x*15% - 2x*6%
75%- 12%= 63%

Now 63% = 3x * n% where n is the % increase in E
n= 21. Hence, B.

Ale300503 · Answer

Solution:

Since Expenditures+Savings = Income, 
3x + 2x = 1.00, (100%)
--> 5x = 1.00
--> x = 1/5

S increases by 6% and I increases by 15%: 
3*1/5 * y + 2*1/5 *1.06 = 1.15 (115%)
--> y =1.21 --> 21%

Answer: (B)

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The ratio of expenditure and savings is 3 : 2 . If the income increase

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