Radha decided to save 25% of her monthly income. But due to her high expenditure, she could only save Rs. 2500, which is 40% of what she wanted to save. By what percent her expenditure was increased?

Radha decided to save 25% of her monthly income. But due to her high expenditure, she could only save Rs. 2500, which is 40% of what she wanted to save. By what percent her expenditure was increased? Correct Answer 20%

Given,

Radha decided to save 25% of his income.

Let Radha’s income be Rs. N .

Radha’s savings = 25N/100 = N/4

Radha’s expenditure = 100 - 25 = 75% of N

But due to her high expenditure, she could save only Rs. 2500 which is 40% of her savings.

⇒ 2500 = (40/100) × (N/4)

⇒ 2500 = N/10

⇒ N = 25000

Radha’s savings = 25000/4 = 6250

But she could save only Rs. 2500

There is Rs. (6250 - 2500 = 3750) extra spending on expenditure.

Her expenditure when savings are 25% of income = 25000 × (75/100) = 18750

Her expenditure is increased by Rs. 3750.

Percentage increase in expenditure

= (3750/18750) × 100

= 20