A saves 35% of his income. His income is increased by 20.1% and expenditure is increased by 25%. By what percentage does his savings increase or decrease?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 11% increase.
Let income = ₹100, so savings = 35%
Expenditure = ₹65
New income = ₹100 + 20.1% = ₹120.1
New expenditure = ₹65 + 25% of 65 = ₹81.25
New savings = 120.1 − 81.25 = ₹38.85
Increase in savings = ₹38.85 − ₹35 = ₹3.85
% increase = × 100 = 11%