Renu saves 20% of her income. If her expenditure increases by 20% and income increases by 29%, then her savings increase by:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 65%
Let the income be 100x.
Saving of Renu = 20% of 100x = 20x.
Expenditure = 100x - 20x = 80x.
New income = 100x × 129% = 129x
New expenditure = 80x × 120% = 96x.
Savings = 129x - 96x = 33x.
% increase = (33x - 20x)/20x × 100 = 65%.