Raj’s monthly income was Rs. 12,000, and his monthly expenditure was Rs. 8,500. Next year, his income increased by 10% and his expenditure increased by 10%. What was the percentage increase or decrease in his savings?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 10% increase.
Initial savings = 12000 - 8500 = 3500
New savings = (1.1 × 12000) - (1.1 × 8500) = 1.1 × 3500 = 3850
Percentage increase = (3850 - 3500)/3500 × 100 = 10%