Bhavani spends 68% of her income. Her income increases by 15% and her expenditure increases by 10%. How much is the increase in the percentage of saving? (Use decimal up to 2 digits)
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Correct answer: D
Explanation
The correct answer is option4 i.e. 25.62% .
Let Bhavani's income be 100 initially.
So, her expenditure is 68.
⇒ Her savings will be 100 - 68 = 32.
⇒ Her income increases by 15%.
⇒ So, her new income will be 100 + 15 = 115.
⇒ Her expenditure increases by 10%.
⇒ So, her new expenditure will be 68 + 10% of 68 = 74.8.
⇒ Her new savings will be 115 - 74.8 = 40.2.
⇒ Increase in savings percentage = (40.2 - 32) / 32 * 100 = 25.63%
⇒ The increase in the percentage of saving is 25.63%.