A woman spends 2/3 of her income. If her income increases by 18% and the expenditure increases by 24%, then the percentage increase in her savings will be:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 6%.
Let the income of the woman be 300x
Her expenditure = 2/3 of 300x = 200x
Her Savings = Income - expenditure = 300x - 200x = 100x
Her income is increased by 18% = New income = 118% of 300x = 354x
Her expenditure is increased by 24% = New expenditure = 124% of 200x = 248x
New savings = 354x - 248x = 106x
Required percentage increase in her savings = [(106x - 100x)/100x] × 100 = 6%