A girl spends 76% of her income. If her income increases by 18% and her expenditure increases by 25%, then what is the percentage increase or decrease in her savings? (Correct to one decimal place)
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Decrease by 4.2%.
Let's assume income = 100
Expenditure = 76
Savings = 100 - 76 = 24
New income = 100 × 1.18 = 118
New expenditure = 76 × 1.25 = 95
New savings = 118 - 95 = 23
Change in savings = 23 - 24 = -1
Percentage change = (-1 / 24) × 100 = -4.17%
Rounded off to one decimal place = -4.2%