The monthly income of a person was Rs. 80,000 and his monthly expenditure was Rs. 45,000. Next year, his income increased by 16% and his expenditure increased by 8%. Find the percentage increase in his savings (correct to 2 decimal places).
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 26.28%.
Income = Expenditure + Saving
Income increased by 16% = 80000 × 116/100 = 92800
Expenditure increased by 8% = 45000 × 108/100 = 48600
Old Saving = 80000 - 45000 = 35000
New Saving = 92800 - 48600 = 44200
Increase (in savings) = 44200 - 35000 = 9200
Required percentage increase = 9200/35000 × 100 = 9200/350 = 26.28%