A person saves 12% of his monthly income. If his monthly is increased by 25% and he still saves the same amount as before then find percentage increase (approximate) in his monthly expenditure.
Let monthly of person is Rs. 100x Monthly savings = 0.12 × 100x = Rs. 12x Monthly expenditure = 100x – 12x = Rs. 88x His increased monthly income = 1.25 × 100x = Rs. 125x His monthly expenditure now = 125x – 12x = 113x Percentage increase in expenditure = [(113x – 88x)/88x] × 100 ~ 28.40%
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