Linda earned an income of $3,000 per month, which has now increased to $3,500 per month. She saves 10 percent and spends the remainder on food, lodging, and other expenses. So far, she has managed to save $20,000. What is the change in her consumption per month after the increase in income?
A) $3,500
B) $3,000
C) $2,700
D) $3,150
E) $450

Question

Quizplus · Accepted Answer

Before the increase, Linda saved 10% of $3,000, which is $300, leaving her with $2,700 for consumption. After the increase, she saves 10% of $3,500, which is $350, leaving her with $3,150 for consumption. The change in her consumption is $3,150 - $2,700 = $450.

Linda Earned an Income of $3,000 Per Month, Which Has