A man spends 80% of his income. His income has increased by 25%, but his expenditure remains the same. By what percent have his savings increased?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 125%.
Let income = ₹100
Expenditure = ₹80
⇒ savings = ₹20
New income = ₹125
Expenditure same = ₹80
New savings = 125 − 80 = ₹45
Increase in savings = 45 − 20 = ₹25
% increase = × 100 = 125%