Mr. X has a monthly income of $26,500 and his monthly expenditure is $20,500. The next year, his salary is increased by 12% and expenditure is increased by 6%. His savings increase by how much percent?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 32.5%
Given:
Mr. X has a monthly income of $26,500 and his monthly expenditure is $20,500
Calculations:
Savings of Mr. X = 26500 - 20500 = 6000
Next year,
Increased salary = 112% of 26500 = 29680
Increased expenditure = 106% of 20500 = 21730
Savings = 29680 - 21730 = 7950
Percentage savings increased = [(7950 - 6000)/6000] × 100 = 32.5%