Question

A man spends 75% of his income. If his income increases by 28% and his expenditure increases by 20%, then what is the increase or decrease percentage in his savings?

• A. 13% increase
• B. 52% decrease
• C. 13% decrease
• D. 52% increase

Answer 1

Answer:

D. 52% increase

Let the Income of a man = 100 Expenditure = 75% of 100 = 75 Initial Saving = 100 – 75 = 25 His income increased by 28% new income =128 Similarly, his expenditure increased by 20% new expenditure = (120/100) × 75 ⇒new expenditure = 90 Saving(new) = 128 - 90 = 38 % increase in savings = {(38 – 25)/25} × 100 ⇒ 13 × 4 = 52%