Rahul spends 70% of his income. His income increased by 15% and his expenditure increased by 7.5%. What is the percentage increase in his savings?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 32.5%.
Income = Expenditure + savings
100 = 70 + 30
His income increased by 15% and his expenditure increased by 7.5%
115 = 75.25 + x
x = 39.75
% increase in savings = (39.75 - 30)/30 × 100 = 32.5%