Question 7

The income of Rahul is Rs 60000 and his expenditure is Rs 40000. If his income is increased by 20% and expenditure in increased by 15%, then what will be the percentage increase in his savings?

Solution

Rahul's income = Rs. 60,000 and expenditure = Rs. 40,000

=> Initial savings = $$60,000-40,000=Rs.$$ $$20,000$$

If his income is increased by 20%, => New income = $$60,000+(\frac{20}{100}\times60,000)$$

= $$60,000+12,000=Rs.$$ $$72,000$$

Similarly, new expenditure = $$40,000+(\frac{15}{100}\times40,000)$$

= $$40,000+6,000=Rs.$$ $$46,000$$

=> Final savings = $$72,000-46,000=Rs.$$ $$26,000$$

$$\therefore$$ Percentage increase in his savings = $$\frac{(26,000-20,000)}{20,000}\times100$$

= $$6\times5=30\%$$

=> Ans - (A)


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