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The expenditure of Sudha is 125% more than her savings. If expenditure decreases by 14% and savings increase by 38%, find % increase in income.
Question

The expenditure of Sudha is 125% more than her savings. If expenditure decreases by 14% and savings increase by 38%, find % increase in income.

A.

5%

B.

4%

C.

3%

D.

2%

Correct option is D

Given:
The expenditure of Sudha is 125% more than her savings. If expenditure decreases by 14% and savings increase by 38%.
Formula Used:
Income = Expenditure + Savings
Solution:
Let savings = 100
Expenditure = 100+ 125% of 100 = 225
Initial income = 225 + 100 = 325
New expenditure = 225 - 225 of  86% = 193.5
New savings = 100 + 38% of 100  = 138
New income = 193.5 + 138 = 331.5
Increase = 331.5 − 325 = 6.5
% increase =6.5325\frac{6.5}{ 325}​ × 100 = 2%

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