Multiple choice

A person saves 25% of his salary every month. His salary is increased by 50%, thius his expenditure also increased by 60%. Find net percentage change in his saving.

  1. Increased by 12.5%

  2. Decreased by 12.5%

  3. Increased by 20%

  4. Decreased by 20%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let salary = 100, then original savings = 25 (25%), expenditure = 75. After 50% salary increase, new salary = 150. After 60% expenditure increase, new expenditure = 75 × 1.6 = 120. New savings = 150 - 120 = 30. Percentage change in savings = (30 - 25) / 25 × 100 = 20% increase.

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