Question

A man spends 60% of his income. his income is increased by 20% and his expenditure also increases by 10%. find the percentage increase in his saving?

a. 10%
b. 15%
c. 20%
d. 25%

Answer 1

To calculate the percentage increase in savings, calculate the new savings after the increase in income and expenditure. The new savings percentage increase is 35%.

Step-by-step explanation:

To calculate the percentage increase in savings, we need to find the original savings and the new savings after the increase in income and expenditure. Let's assume the man's income is $100.

Given that the man spends 60% of his income, his expenditure is $60 (60% of $100).

When his income increases by 20%, his new income is $120 ($100 + 20% of $100).

His expenditure also increases by 10%, so his new expenditure is $66 (10% of $60 added to $60).

Therefore, his new savings are $54 ($120 - $66).

The percentage increase in savings is calculated as:

($54 - $40/$40) x 100% = 35%.

So, the percentage increase in his savings is 35%.