MAT Exam 2020 Paper

Concept:Compute the change in expenditure by first taking income as a fixed base value.Explanation:Let the original income be $₹100$.Original savings $= 6\%$ of $100 = ₹6$.So, original expenditure $= 100 - 6 = ₹94$.After 2 years, income increases by $15\%$.New income $= 100 + 15\%$ of $100 = 100 + 15 = ₹115$.Savings remain the same, i.e. $₹6$.New expenditure $= 115 - 6 = ₹109$.Increase in expenditure $= 109 - 94 = ₹15$.Percentage hike in expenditure $= \frac{15}{94} \times 100\% = 15.95\%$.Answer:$\therefore$ The approximate hike in expenditure is $15.95\%$.Correct option: D.