Raghav spends 80% of his income. If his income increases by 12% and his expenditure increases by 17.5%, then what is the percentage decrease in his savings?
Show answer & explanation
Correct answer: B
Explanation
The correct answer in option 2 i.e. 10%
Let the income of Rhagav = 100
⇒ Expenditure will be = 80
⇒ Savings = 20
Increase in income = 100 × 112/100 = 112
Increase in expenditure = 80 × 117.5/100 = 94
⇒ New savings = 112 - 94 = 18
Decrease in savings = Old savings - New savings
⇒ 20 - 18 = 2
Decrease percentage = Decrease/Old savings × 100
⇒ 2/20 × 100 = 10%