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Question : The ratio between monthly income and expenditure of Vaidic is 8 : 5. If his income increases by 20% and his expenditure increases by 30%, then find the percentage increase or decrease in his monthly savings.

Option 1: $5 \frac{2}{3}$% increase

Option 2: $5 \frac{2}{3}$% decrease

Option 3: $3 \frac{1}{3}$% increase

Option 4: $3 \frac{1}{3}$% decrease


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: $3 \frac{1}{3}$% increase


Solution : Let the income of Vaidic be 800 and expenditure be 500
Saving = income – expenditure = 800 – 500 = 300
When income is increased by 20%
= 800 × $\frac{120}{100}$ = 960
When expenditure is increased by 30%
= 500 × $\frac{130}{100}$ = 650
New saving = new income – new expenditure
= 960 – 650 = 310
Change in saving = 310 – 300 = 10
Increase in percent = $\frac{10}{300}$×100
= $\frac{10}{3}$
= $3\frac{1}{3}$% increase
Hence, the correct answer is $3\frac{1}{3}$% increase.

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