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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?

Correct Answer: 21

Explanation:

Given:

  • Expenditure : Savings = 3 : 2
  • Income = Expenditure + Savings → 3 + 2 = 5 units

Let original income = Rs. 100

  • Then, Expenditure = (3/5) × 100 = Rs. 60
  • Savings = (2/5) × 100 = Rs. 40

After increase:

  • Income increases by 15% → 100 + 15 = Rs. 115
  • Savings increase by 6% → 40 + 6% of 40 = Rs. 42.40

New expenditure = New income – New savings

Expenditure = 115 - 42.40 = Rs. 72.60


Old expenditure = Rs. 60

Increase in expenditure = 72.60 - 60 = 12.60


% Increase = (12.60 / 60) × 100 = 21%


Answer: 21%

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