Question 183

A man spends 75% of his income. His income is increased by 20% and he increased his expenditure by 10%. His savings are increased by

Solution

let the income be Rs 100

As it is given that he spends 75% of his income so his spending is = Rs 75

Saving =100-75=Rs25

Now his income is increased by 20% .So his new income is = 1.2x100 = 120 Rs

His expenditure increased by 10 % .So his new expenditure is = 1.1x 75 = 82.5 Rs

New savings= 120 - 82.5 = Rs 37.5

Increment in savings = $$\frac{37.5-25}{25}$$ * 100 = 50% .

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