Ramu used to spend 72% of his income. His income has increased by 12%, and he increases his expenditure by 5%. If Ramu earlier saved y and after the increases he now saves x, then what is the value of( ) %
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Correct answer: D
Explanation
The correct answer is option 4 i.e. 30%.
Let Ramu's initial income be ₹100.
Initial expenditure = 72% of 100 = ₹72
Initial savings (y) = 100 - 72 = ₹28
New income = 100 + 12 = ₹112
New expenditure = 72 + (5% of 72) = 72 + 3.6 = ₹75.6
New savings (x): 112 - 75.6 = ₹36.4
Now, = (36.4 - 28)/28 × 100 = (8.4/28) × 100 = 30%
Therefore, the required value is 30%.