Multiple choice

Arbind spends 75% of his income and saves the rest. His income is increased by 20% and he increased his expenditure by 10%. Then the increase in savings in percentage is -

  1. 55%

  2. 52%

  3. 50%

  4. 48%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let initial income = 100. Initial expenditure = 75, savings = 25. New income = 120. New expenditure = 75 × 1.1 = 82.5. New savings = 120 - 82.5 = 37.5. Increase in savings = 37.5 - 25 = 12.5. Percentage increase = (12.5/25) × 100 = 50%.

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