A man spends 70% of his income. His income increases by 10% and his expenditure by 5%. What is the percentage increase in his savings?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 21.67%.
Let income = 100
Spending = 70
Savings = 100 - 70 = 30
New income = 110
New spend = 70 × 1.05 = 73.5
New savings = 100 - 73.5 = 36.5
Increase in savings = 36.5 - 30 = 6.5
Required percentage = (6.5/30) × 100 = 21.67% (approx)