The income of Ajay is ₹45000. He saves 18% of the income. Vijay's expenditure is 20% more than Ajay's expenditure and his savings is ₹3420. Vijay's income is what percent more than the income of Ajay?

Correct option is B

Given:

Ajay’s income = ₹45,000

Ajay saves 18% of his income

Vijay’s expenditure is 20% more than Ajay’s expenditure

Vijay’s savings = ₹3,420

Find: Vijay’s income is what percent more than Ajay’s income

Formula Used:

Income =  Expenditure + Savings

% increase = $$\frac{\text{Increase}}{\text{Original}} \times 100$$​​

Solution:

Ajay’s savings = 18% of  45000 = 8100

Ajay’s expenditure = 45000 - 8100 = 36900

Vijay’s expenditure (20% more) = 36900 × 1.20 = 44280

Vijay’s income = 44280 + 3420 = 47700

Difference in income = 47700 - 45000 = 2700

Percentage more than Ajay’s income:

$$\frac{2700}{45000} \times 100$$​ = 6%

Alternate Solution (Exam Trick):