Question 132

A man spends $$\frac{2}{3}rd$$ of his income. If his income increases by 14% and the expenditure increases by 20%, then the percentage increase in his savings will be

Solution

Let initial income be Rs. 300

=> Expenditure = Rs. 200 and savings = Rs. 100

Now, new income after 14% increase = $$\frac{114}{100}\times300=Rs.$$ $$342$$

Similarly, new expenditure = Rs. 240

=> New savings = Rs. $$(342-240)=Rs.$$ $$102$$

$$\therefore$$ Increase in savings = $$\frac{(102-100)}{100}\times100=2\%$$

=> Ans - (B)

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