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    Question

    Raman's earnings have gone up by 12.5%. While

    maintaining the same level of expenditure, his savings have increased by 50%. Determine the percentage of his initial income that he spends.
    A 75% Correct Answer Incorrect Answer
    B 45% Correct Answer Incorrect Answer
    C 65% Correct Answer Incorrect Answer
    D 55% Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    Solution

    ATQ, Let, the initial income of the Raman be Rs. '8x'. So, the new income of the Raman = 1.125 Ă— 8x = Rs. '9x' Let, his initial expenditure = New expenditure be Rs.'y' ATQ, 9x - y = 1.5 Ă— (8x - y) Or, 9x - y = 12x - 1.5y Or, 12x - 9x = 1.5y - y Or, 3x = 0.5y Or, (y/x) = (3/0.5) Or, (y/x) = 6 Or, y = 6x So, the required % = (y/8x) Ă— 100 = (6x/8x) Ă— 100 = 75%

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