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Aman spends 50% of his income. If income increases by 20% and expenses increases by 10%, his saving will increases by:
Let the income of the person be 2S; if he spends 50% of it, then he is saving 2S - S = S.
If his income increases by 20%, then the income becomes $$2S\ +\ \dfrac{20}{100}\left(2S\right)\ =\ \dfrac{12}{5}S$$
Initially, his expenses were S, and if they increase by 10%, the expenses becomeΒ $$S\ +\ \dfrac{10}{100}\left(S\right)\ =\ \dfrac{11}{10}S$$
So, his savings in the second caseΒ =Β $$\dfrac{12}{5}S\ -\ \dfrac{11}{10}S\ =\ \dfrac{\left(24\ -\ 11\right)}{10}S\ =\ \dfrac{13}{10}S$$
The savings increased by a percentage ofΒ $$\dfrac{\left(\ \dfrac{13}{10}S\ -\ S\right)}{S}\times\ 100\ =\ \dfrac{3}{10}\ \times\ 100\ =\ 30\%$$
Hence, the correct answer is option B.
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