Correct Answer - Option 1 : a only
Given ∶
He saves 20% of his salary.
After a year, His income increases by 30%.
Formula Used∶
Increasement in value = Increased value - Original value
Increase in percentage = [Increasement in value/Original value] × 100
Calculation∶
Let John's income = Rs.100
Then Saving = 20% of 10 = Rs.20
So, Expenditure = 100 - 20 = Rs.80
After increment of 30%, new salary = Rs.130
But savings are same = Rs.20
So, New Expenses = 130 - 20 = Rs.110
Increase in Expenses,
⇒
[(110 - 80)/80] × 100 =
37.5 %
∴ The increasement in his expenses is of 37.5%.