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).
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Correct answer: B
Explanation
The correct answer is option 2 i.e. 26.29%.
Current Savings = 80000 - 45000 = 35000
Next year's Income = (116/100) × 80000 = 92800
Next year's Expenditure = (108/100) × 45000 = 48600
Next year's Savings = 92800 - 48600 = 44200
Increase in Savings = 44200 - 35000 = 9200
Percentage Increase = (9200/35000) × 100 = 26.29% (approx)