An employee spends 75% of his income. His income rises by 25%, while his spending rises by 10%. The percentage of increase in his saving is ________.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 70%.
Original income = ₹100
Original spending = 75% of ₹100 = ₹75
Original saving = ₹100 − ₹75 = ₹25
Income increases by 25% → New income = ₹100 + 25% of 100 = ₹125
Spending increases by 10% → New spending = ₹75 + 10% of 75 = ₹82.50
new saving = ₹125 − ₹82.50 = ₹42.50
Increase = ₹42.50 − ₹25 = ₹17.50
% Increase in saving =