A man spends 75% of his income. If his income increases... – Arithmetic

Arithmeticmedium · Past Paper

A man spends 75% of his income. If his income increases by 20% and his expenditure increases by 10%, find the percentage increase in his savings.

A30%

B40%

C50%

D60%

✓ Correct Answer: C — 50%

Let Income=100, Exp=75, Sav=25. New Income=120, New Exp=82.5, New Sav=37.5. Increase = 12.5. Increase % = (12.5/25)*100 = 50%.

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