18 Views

Question : A man spends 75% of his income. If his income increases by 28% and his expenditure increases by 20%, then what is the increase or decrease percentage in his savings?

Option 1: 52% decrease

Option 2: 52% increase

Option 3: 13% decrease

Option 4: 13% increase


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: 52% increase


Solution : Man spends 75% of his income.
Income increases by 28%
Expenditure increases by 20%
Let the Income of a man be 100.
Expenditure = 75% of 100 = $(\frac{75}{100}) × 100$ = 75
Saving = Income – Expenditure
Initial saving = 100 – 75 = 25 --------------(1)
Now as per the question,
His income increased by 28%
His new income = Old income + 28% of Old income
His new income = ($\frac{128}{100}$) × 100 = 128
Similarly, his expenditure increased by 20%
His new expenditure = ($\frac{120}{100}$) × 75
His new expenditure = 90
Saving(new) = income(new) – expenditure(new)
Saving(new) = 128 – 90 = 38  -------------(2)
Now, percentage increase in savings = $\frac{(38 - 25)}{25} × 100$ -------------(from (1) and (2))
= 13 × 4 = 52%
$\therefore$ The percentage increase in saving is 52%.
Hence, the correct answer is  52% increase.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books