Question

A man spends 75% of his income. His income increases by 20% and his expenditure also increases by 10%. Find the % increase in his saving

Answer 1

Let income = 100, exp = 75, sav = 25

Now, New income = 100 + 20%(100) = 120

New Exp. = 75 + 10%(75) = 82.5

New Sav. = 120 - 82.5 = 37.5

% increase in savings = (12.5/50)x100 = 50%