Multiple choice

A man spends 75\% of his income, when his income is increased by 20\%, he increases his expenditure by 10\%. By how much per cent has his savings increased?

  1. 31.25%

  2. 33.25%

  3. 32.50%

  4. 50.00%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let initial income be 100. Initial expenditure = 75, savings = 25. New income = 120 (20% increase). New expenditure = 82.5 (10% increase on 75). New savings = 120 - 82.5 = 37.5. Percentage increase in savings = (37.5 - 25)/25 × 100 = 50%.

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