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Harsha's expenditure is 45% of her income. If the income from the next month is increased by 15% and the amount she saved each month remains the same,
Question

Harsha's expenditure is 45% of her income. If the income from the next month is increased by 15% and the amount she saved each month remains the same, then find the percentage increase in her expenditure (rounded off to 2 decimal places).

A.

33.33%

B.

15.00%

C.

45.00%

D.

27.50%

Correct option is A

Let the income be 100x.
Expenditure = 100x × 45/100 = 45x
Savings = 100x - 45x = 55x
New income = 100x × 115/100 = 115x
New saving = Old saving = 55x
New Expenditure = 115x - 55x = 60x
Expenditure increase% = (60x - 45x)/45x × 100
= 15x/45x × 100
= 100/3 = 33.33%

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