Discussion Forum

A man spends 75 % of his income. His income increases by 20% and he increased his expenditure by 15%, his savings are then increased by

Answer:

Explanation:

Let income $= Rs.100$

$\therefore$ Expenditure $= Rs.75$ Saving $= Rs. 25$

New income $= Rs.120$  

$\therefore$ Expenditure $=\left(\frac{115}{100}\right) \times 75$ $= \frac{345}{4}$

Saving $= 120 - \left(\frac{345}{4}\right)$ $= \frac{135}{4}$

Increase % in saving $=\left(\frac{135}{4}-25\right) \div 25 \times 100$

$= \left(\frac{35}{4}\right)\times \left(\frac{1}{25}\right)\times 100$ $= 35$%