Raj's income is Rs 45,000 and his expenditure is Rs 33,000. If his income is increased by 20% and expenditure by 12%, then what will be the percentage increase in saving?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 42%.
Income - Expenditure = Savings
Raj's income = Rs 45,000
Expenditure = Rs 33,000
Savings = 45000 - 33000 = Rs 12000
His income is increased by 20%
So, new income = 45,000 × (120/100)
= 54000
Expenditure increased by 12%
New expenditure = 33,000 × (112/100) = Rs 36960
New savings = 54000 - 36960 = Rs 17040
Percentage increase in saving =
= 42%