A man spends 70% of his income. His income is increased by 28% but expenditure remains as earlier. By what percentage are his savings increased (correct to one decimal place)?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 93.3%.
Assume original income = ₹100
Expenditure = 70% of 100 = ₹70
Savings = ₹100 – ₹70 = ₹30
New income = 28% increase ⇒ ₹100 × 1.28 = ₹128
Expenditure stays the same = ₹70
New savings = ₹128 – ₹70 = ₹58
Percentage increase saving = (58 − 30)/30 × 100 = 28/30 × 100 = 93.33%