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Question : A man spends 65% of his income. His income increases by 20% and his expenditure also increases by 10%. The percentage of increase in his savings is ________.

Option 1: 38.5%

Option 2: 35.8%

Option 3: 10%

Option 4: 20%


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: 38.5%


Solution : Let the income of the man be 100
His expenditure is 65% of his income = 65
Savings = income – expenditure = 100 – 65 = 35
When income increased by 20% = 120
Expenditure increases by 10% = $65\times\frac{110}{100}=71.5$
New savings = 120 – 71.5 = 48.5
Difference between the current and previous savings = 48.5 – 35 = 13.5
Required percentage = $\frac{\text{Difference between current and previous savings}}{\text{previous savings}}\times100$
= $\frac{13.5}{35}\times100=38.57\approx 38.5$%
Hence, the correct answer is 38.5%.

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