The monthly income of Ramesh was Rs.16,500 and his monthly expenditure was Rs. 10,500. Next year his income increased by 25% and his expenditure increased by 19%. Find the percentage increase in his savings.
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Correct answer: D
Explanation
The correct answer is Option 4 i.e. 35.5%.
Savings of Ramesh in initial year = 16500 - 10500 = Rs. 6000
Saving% = (6000/16500) × 100 = 36.36%
Increase in income from next year,
⇒ Increased income = 16500(1 + 25%)
⇒ Increased income = 16500(1 + 1/4)
⇒ Increased income = 16500 × 5/4
⇒ Increased income = Rs. 20625
Increase in expenses from next year,
⇒ Increased expense = 10500(1 + 19/100)
⇒ Increased expense = 10500(1 + 0.19)
⇒ Increased expense = 10500 × 1.19
⇒ Increased expense = Rs. 12495
Savings from next year,
Savings = 20625 - 12495 = Rs. 8130
The total increase in savings,
⇒ Savings% = [(8130/6000) - 1] × 100
⇒ Savings% = [(8130 - 6000)/6000] × 100
⇒ Savings% = 2130/6000 × 100
⇒ Savings% = 35.5%