A man spends 87% of his income. His income increased by 18% and he increased his expenditure by 17%. His savings will then be increased by : (Consider up to two decimals only)
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 24.69%.
Calculations:
Let the salary be 100x
We know,
⇒ Salary = expenditure + savings
According to the question;
⇒ 100x = 87x + 13x
Increased in income and expenditure as given;
⇒ 118x = 101.79x + 16.21x
Required percentage increase in savings = [(16.21x - 13x)/13x] × 100 = 24.69%