Question

A man spends 75% of his income. If his income increases by 20% and his expenditure increases by 10%, his savings increase by

• A. 40%
• B. 30%
• C. 45%
• D. 50%

Hint:

Fix income = 100 so savings = 25, recompute after the changes, then find the percent rise.

Answer 1

The Correct Option is D

Step 1: Set a base income.
Income \(=100\), spending \(=75\), savings \(=25\).
Step 2: New income and spending.
Income \(=120\); spending \(=75\times1.10=82.5\).
Step 3: New savings.
\(120-82.5=37.5\).
Step 4: Percent increase in savings.
\(\dfrac{37.5-25}{25}\times100=50\%\).
\[\boxed{50\%}\]