A man spends 75% of his income. If his income increases by 28% and his

1.	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?1. 13% increase2. 52% decrease3. 13% decrease4. 52% increase
Answer» Correct Answer - Option 4 : 52% increase Given: Man spends 75% of his income. Income increases by 28% Expenditure increases by 20% Concept: Saving = Income – Expenditure Solution: Let the Income of a man = 100 Expenditure = 75% of 100 ⇒ (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 = (128/100) × 100 = 128 Similarly, his expenditure increased by 20% ⇒ His new expenditure = (120/100) × 75 ⇒ His new expenditure = 90 Saving_(new) = Income_(new) – Expenditure_(new) ⇒ Saving(new) = 128 - 90 = 38 ----(2) Now, % increase in savings = {(38 – 25)/25} × 100 ----(from 1 and 2) ⇒ 13 × 4 = 52% ∴ The % increase in saving is 52%

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?1. 13% increase2. 52% decrease3. 13% decrease4. 52% increase

Answer» Correct Answer - Option 4 : 52% increase

Given:

Man spends 75% of his income.

Income increases by 28%

Expenditure increases by 20%

Concept:

Saving = Income – Expenditure

Solution:

Let the Income of a man = 100

Expenditure = 75% of 100

⇒ (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 = (128/100) × 100 = 128

Similarly, his expenditure increased by 20%

⇒ His new expenditure = (120/100) × 75

⇒ His new expenditure = 90

Saving_(new) = Income_(new) – Expenditure_(new)

⇒ Saving(new) = 128 - 90 = 38 ----(2)

Now, % increase in savings = {(38 – 25)/25} × 100 ----(from 1 and 2)

⇒ 13 × 4 = 52%

∴ The % increase in saving is 52%