Multiple choice

The income of a person is 10000 and its expenditure is 6000 and thus saves 4000rs. In the next year his income is increased by 10% and its expenditure increased by 20%. Now his saving is what percent lower than the previous saving?

  1. 5%

  2. 7.5%

  3. 10%

  4. 15%

  5. None of these
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A Correct answer
Explanation

Initial: Income 10000, Exp 6000, Savings 4000. New: Income 11000, Exp 7200 (6000 * 1.2), Savings 3800. Percent decrease = (4000 - 3800) / 4000 = 200 / 4000 = 0.05 = 5%.

AI explanation

The new income is 11000 and the new expenditure is 7200, leaving a new savings of 3800. Using the percentage decrease formula, the difference in savings is 400 - 3800 = 200, so the percentage decrease is (200 / 4000) * 100. This results in a 5% lower savings.

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