The monthly income of an employee was ₹26,500 and his monthly expenditure was ₹22,000. Next year, his income increased by 20% and his expenditure increased by 15%. Find the percentage increase in his savings.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 44%.
Given that
The monthly income of an employee = ₹26,500
His monthly expenditure = ₹22,000
As we know,
Savings = Income - Expenditure
Calculation
Savings = 26500 - 22000 = ₹4500
According to the question
Next year, His monthly income = 26500 × (120/100) = ₹31800
His monthly expenditure = ₹22,000 × (115/100) = ₹25300
Now, his monthly savings = 31800 - 25300 = ₹6500
The increment of savings = 6500 - 4500 = ₹2000
Hence, The percentage increase in savings = (2000/4500) × 100 = 44%