Question

A saves 20% of his income. His income would have increased by 20%. Hence he increases his spending by 20%. What is the percentage increase in his savings?

Answer 1

Answer:

20%

Step-by-step explanation:

Let his earning was 100 . so saving will be 20 and spending will be

100 - 20 = 80

Now his new salary 100 + 20 = 120

New spending

= 80 + 80 * 20/100 = 96

So new saving will be 120 - 96 = 24

Change in saving = 24 - 20 = 4

Percentage change

$\frac{4}{20} \times 100 = 20\%$