The income of Raman is ₹75400. He saves 23% of his income. If his income increases by 27% and expenditure increases by 50%, then his savings will:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. decrease by ₹8671.
Initial income = ₹75400
Savings = 23% of 75400 = 0.23 × 75400 = ₹17,342
Expenditure = 75400 − 17342 = ₹58,058
New income = 75400 × 1.27 = ₹95,758
New expenditure = 58058 × 1.5 = ₹87,087
New savings = 95758 − 87087 = ₹8,671