Multiple choice

Last year an employee used to save 40% of his salary. But now his salary increases by 50% and expenses increase by 20%. What is his percentage savings now?

  1. 48%

  2. 56%

  3. 30%

  4. 52%
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D Correct answer
Explanation

Let salary = 100, savings = 40, expenses = 60. New salary = 150. New expenses = 60 * 1.2 = 72. New savings = 150 - 72 = 78. Percentage savings = (78/150) * 100 = 52%.

AI explanation

Let the old salary be 100, so initial savings are 40 and expenses are 60. The new salary increases by 50 percent to 150, and expenses increase by 20 percent to 72. The new savings equal 150 minus 72, which is 78. The new percentage savings are (78 divided by 150) multiplied by 100, resulting in 52 percent.

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