Question

Vijay saves 20% from his monthly salary. If his salary increases by 25% and the percentage of savings remains the same, then what is the percentage increase in his monthly expenditure?

• A. 35%
• B. 25%
• C. 30%
• D. 45%

Answer 1

Answer:

B. 25%

Let '100x' be the monthly salary of Vijay
Initial savings = 20x
Initial expenditure = 100x  – 20x = 80x

Now, salary increases by 25%

New monthly salary = 125x
New savings =  125x * (20/100) = 25x
New expenditure =125x - 25x = 100x

Required percentage increase = (20x/80x) * 100
= 25%

Short Trick:

Income	Savings	Expenditure
100(Let)	20(given)	80
125  (↑ by 25%)	25 (20% of income)	100

So increase in expenditure = 100 - 80 = Rs. 20

Increase % = (20/80)*100 = 25%