A spends 65% of his income. His income is increased by 20.1% and the expenditure is increased by 20%. By what per cent (correct to one decimal place) does his saving increase or decrease?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Increase by 20.3%
Let's assume the income of A = 100
Income - Expenditure = Savings
100 - 65 = 35
His income incresed by 20.1% = 120.1
Expenditure is incresed by 20%. = 120% of 65 = 78
120.1 - 78 = 42.1
So, percentage increased in Savings = (42.1 - 35)/35 × 100 = 20.3%