A person spends 60% of his monthly income. If his income increases by 60% and the expenditure increases by 90%, then what is the percentage increase/decrease in his monthly savings?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Increase by 15%.
Original expenditure = 60% of ₹100 = ₹60
Original savings = ₹100 − ₹60 = ₹40
Income increases by 60%:
New income = ₹100 + 60% of ₹100 = ₹160
Expenditure increases by 90%:
New expenditure = ₹60 + 90% of ₹60 = ₹114
New savings = ₹160 − ₹114 = ₹46
Increase = ₹46 − ₹40 = ₹6
Percentage increase in savings =