A family spends on groceries, rent, and other expenses in the ratio 3 : 5 : 2. Next year, groceries are expected to rise by 8%, rent by 4%, and other expenses to fall by 10%. What will be the overall percentage change in total expenditure?

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Accepted Answer

1. Take total as 10 parts from the ratio $3:5:2$. So groceries = 3, rent = 5, other = 2.

2. Apply changes: groceries = $3	imes1.08=3.24$, rent = $5	imes1.04=5.20$, other = $2	imes0.90=1.80$.

3. New total = $3.24+5.20+1.80=10.24$. Increase = $10.24-10=0.24$.

4. Percentage change = $(0.24/10)	imes100=\mathbf{2.4\%}$ increase.

FINAL_ANSWER: b

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