Multiple choice

The income of Raju is 20% more than his expenditure. If his income increases by 60% and his expenditure is increase by 70% then by what percent does his saving increases/decreases?

  1. It decreases by 10

  2. It decreases by 2%

  3. It increases by 10%

  4. It increases by 2%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let expenditure = E. Then income = 1.2E and savings = 0.2E. After 60% increase in income: new income = 1.6×1.2E = 1.92E. After 70% increase in expenditure: new expenditure = 1.7E. New savings = 1.92E-1.7E = 0.22E. Percentage change = (0.22E-0.2E)/(0.2E)×100 = 10%.

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