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      Question

      Sanjay saves 40% of his monthly income. If his monthly

      income increases by 12% while his monthly savings remain the same, find the increase in his monthly expenditure.
      A 20% Correct Answer Incorrect Answer
      B 60% Correct Answer Incorrect Answer
      C 35% Correct Answer Incorrect Answer
      D 70% Correct Answer Incorrect Answer

      Solution

      ATQ,

      Let the monthly income of Sanjay be Rs. 100x.

      So, monthly savings of Sanjay = 0.40 Γ— 100x = Rs. 40x

      Monthly expenditure of Sanjay = 100x – 40x = Rs. 60x

      Monthly income of Sanjay after increase = 1.12 Γ— 100x = Rs. 112x

      Monthly expenditure of Sanjay after increase = 112x – 40x = 72x

      Desired percentage = [(72x – 60x)/60x] Γ— 100 = 20%

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