Anita saves 20% of her income. If her income is increased by 30% and she saves 25% of the new income, by what percentage will her actual savings increase?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 62.50%.
Let Anita's initial income = 100
Initial savings = 20
New Income = 100 + 30 = 130
New savings = (25/100) × 130 = 32.50
Increase in savings = 32.50 - 20 = 12.50
Percentage increase = (12.50/20) × 100 = 62.50%