A person saves % of his income. If the saving increases by 22% and the expenditure increases by 10%, then the percentage increase in his income is:
- AOption (a)
18%
- BOption (b)
14%
- COption (c)
16%
- DOption (d)
22%
View answer & explanationHide answer & explanation
Correct answer
14%
Why this answer is correct
Shortcut Trick
Savings = 331/3% = 1/3 of Income → Ratio of Saving : Expenditure = 1 : 2.
Percentage increase in Income = [ (Saving Part × % Increase) + (Expenditure Part × % Increase) ] ÷ Total Parts.
% Increase in Income = [ (1 × 22%) + (2 × 10%) ] ÷ (1 + 2)
% Increase in Income = (22 + 20) ÷ 3 = 42 ÷ 3 = 14%.
∴ The correct answer is 14%.
Alternate Method
Given: Saving = 331/3% of Income, Saving increase = 22%, Expenditure increase = 10%.
Formula: Income = Savings + Expenditure
⇒ Let total Income = ₹300
⇒ Savings = 331/3% of 300 = 1/3 × 300 = ₹100
⇒ Expenditure = Income − Savings = 300 − 100 = ₹200
⇒ New Savings = 100 + (22% of 100) = 100 + 22 = ₹122
⇒ New Expenditure = 200 + (10% of 200) = 200 + 20 = ₹220
⇒ New Income = New Savings + New Expenditure = 122 + 220 = ₹342
⇒ Increase in Income = 342 − 300 = ₹42
⇒ Percentage Increase in Income = (42 ÷ 300) × 100 = 14%
∴ The correct answer is 14%.
Additional Information
Income Balance Equation
Total Income = Expenditure + Savings. Any change in the parts must balance the total change.
Weighted Average Formula
Overall % Change = (Value1 × Change1 + Value2 × Change2) ÷ (Value1 + Value2).
Fractional Conversion
331/3% = 1/3, 662/3% = 2/3, 162/3% = 1/6, 12.5% = 1/8.




