A person earns ₹16,000 per month and spends 80% of his income and saves the…
2024
A person earns ₹16,000 per month and spends 80% of his income and saves the remaining amount. If his income increases by 20% and expenditure by 10%, find the percentage of increase in his savings.
- A.
140%
- B.
90%
- C.
120%
- D.
60%
Attempted by 12 students.
Show answer & explanation
Correct answer: D
Initial Financial State:
Initial Income: ₹16,000.
Initial Expenditure: 80% of ₹16,000 = ₹12,800.
Initial Savings: Income - Expenditure = ₹16,000 - ₹12,800 = ₹3,200.
Updated Financial State:
New Income: 20% increase on ₹16,000 = ₹16,000 + ₹3,200 = ₹19,200.
New Expenditure: 10% increase on ₹12,800 = ₹12,800 + ₹1,280 = ₹14,080.
New Savings: New Income - New Expenditure = ₹19,200 - ₹14,080 = ₹5,120.
Percentage Increase in Savings:
Formula: ((New Savings - Old Savings) / Old Savings) * 100.
Calculation: ((5,120 - 3,200) / 3,200) * 100 = (1,920 / 3,200) * 100 = 60%.