Question

A man spends 75% of his income. His income increases by 20% and his expenditure also increases by 10%. The percentage of increase in his savings is

• A. 20
• B. 30
• C. 40
• D. 50

Answer 1

Answer:

D. 50

Let the total income of man be Rs. 100 Expenditure of man = 100 × 75/100 = Rs. 75 Savings of income = Rs. 25 New income of man = 100 × (120/100) = Rs. 120 New expenditure of man = 75 × (110/100) = 82.5 New savings of man = 120 - 82.5 = 37.5 Savings increased by = 37.5 - 25 = 12.5 Savings increased by (in %) = 12.5/25 × 100 = 50%