Multiple choice

A person spends 20% of his income on food, 20% on rent and 30% of the remaining income on shopping and saves the rest. In a particular month, due to the festival season, he spent twice the amount on shopping than what he usually spends. What is the (approximate) percentage decrease in his savings?

  1. 20%

  2. 37%

  3. 43%

  4. 50%

  5. 66%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let Income = 100. Food = 20, Rent = 20. Remaining = 60. Shopping = 30% of 60 = 18. Savings = 60 - 18 = 42. Festival: Shopping = 18 * 2 = 36. New Savings = 100 - 20 - 20 - 36 = 24. Decrease = (42 - 24) / 42 = 18 / 42 = 3/7 = 42.85%.

AI explanation

Assume the monthly income is 100; he spends 20 on food and 20 on rent, leaving a remaining income of 60. Normally, 30% of 60, which is 18, is spent on shopping, leaving savings of 42. During the festival month, shopping doubles to 36, reducing the savings to 24, which is a decrease of 18 from the original 42. The percentage decrease in savings is (18 divided by 42) multiplied by 100, or approximately 43%.

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