Multiple choice

A person saves 60% of his salary. If the salary of the person increases by 40% and his expenses increase by 20%, then what is the percentage increase in his savings?

  1. 53.33%

  2. 45.66%

  3. 40.50%

  4. None of these
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A Correct answer
Explanation

Let salary be 100. Savings = 60, Expenses = 40. New salary = 140. New expenses = 40 * 1.2 = 48. New savings = 140 - 48 = 92. Increase in savings = (92 - 60) / 60 = 32 / 60 = 53.33%.

AI explanation

Assume the person's initial salary is Rs. 100, which means his initial savings are Rs. 60 and his expenses are Rs. 40. After a 40% salary increase, the new salary becomes Rs. 140, and with a 20% expense increase, the new expenses become Rs. 48. The new savings become Rs. 140 - Rs. 48 = Rs. 92, showing a savings increase of Rs. 32 over the original Rs. 60. The percentage increase in savings is (32 / 60) * 100, which equals 53.33%.

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