Shortcut Trick Expenditure of Renu is 150% more than her savings means,
⇒ 150/100 = 3/2
So, Let the Expenditure be 5x ( 3 + 2) and Savings be 2x
Income : Expenditure : Savings
⇒ 7x : 5x : 2x
We can assume here 7x = 70x, 5x = 50x & 2x = 20x
According to the questions,
Income increase by 20%
New income = 70x + (20% × 70x) = 84x
Savings increase by 50%
New savings = 20x + (50% × 20x) = 30x then,
New expenditure is (84x - 30x) = 54x
% increase in expenditure = 54x - 50x = 4x
⇒ (4x/50x) × 100 = 8%.
Alternate Method
Given:
Expenditure of Renu is 150% more than her savings.
After that, her income increases by 20% and her savings increase by 50%
Formula used:
Income = Expenditure + Savings
Calculation:
Let savings be x
According to the question,
Expenditure = x + (x × 150%)
⇒ 5x/2
Income = Expenditure + Saving
Income = 5x/2 + x
⇒ 7x/2
If her income increases by 20%,
New Income = 27x+(27x×20%)
⇒ 21x/5
If her savings increases by 50%,
New saving = x + (x × 50%)
⇒ 3x/2
New Expenditure = 21x/5 - 3x/2 = 27x/10
Increased Expenditure = 27x/10 - 5x/2
⇒ 2x/10
Increased Expenditure(%) = 25x102x×100
⇒ 8%
∴ The increased expenditure is 8%.
Alternate Method Let saving = 100 then expenditure = 150% 0f saving = 250
Income = saving + expenditure = 100 + 250 = 350
Income after increase 20% = 350 × 120% = 420
then saving increase by 50%, which becomes 100 × 150% = 150
then Expenditure become = 420 - 150 = 270
Increment in expenditure = 270 - 250 = 20
% increase in expenditure = 20/250 × 100 = 8%