The monthly income of Ramesh was Rs.16,500 and his monthly expenditure was Rs.10,500. Next year his income increased by 25% and his expenditure increased by 19%. Find the percentage increase in his saving.
B
Correct answer
Explanation
Original saving = 16500 - 10500 = 6000. New income = 16500 + 25% = 20625. New expenditure = 10500 + 19% = 12495. New saving = 20625 - 12495 = 8130. Percentage increase = (8130 - 6000) / 6000 × 100 = 2130 / 6000 × 100 = 35.5%. The key is to calculate the percentage increase based on the original saving, not the original income.