Raju spends 80% of his income. His income increased by 20%, while his spending rose by 10%. The percentage increase in his savings is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 60%.
Let initial income = 100
Initial spending = 80
Initial savings = 100 - 80 = 20
New income = 100 + 20 = 120
New spending = (110/100) × 80 = 88
New savings = 120 - 88 = 32
Increase in savings = 32 - 20 = 12
Percentage increase in savings = (12/20) × 100 = 60%