Question

7. A person spends 75% of his income. If his income increases by 20% and expenses increase by 15% then find the per cent increase in his savings. ​

Answer 1

Answer:

35%

Step-by-step explanation:

Let his income be 100.

Expenditure = 75

Savings = 25.

After Increase:

New Income = 120.

Expenditure = (75 * 115/100)

                   = 86.25

Savings = 120 - 86.25 = 33.75

∴ Percentage Increase in savings :

= (33.75 - 25/25) * 100

= 0.35 * 100

= 35%

Therefore,

% increase in savings = 35%.

Hope it helps!