Question

Paulson spends 75% of his income. His income is increased by 20% and he increased his expenditures by 10%. Find the percentage increase in his savings.

Answer 1

Answer:

50%

Explanation:

Let us assume his income is 100.

Now A/Q his expenditure is 75 %  i.e.  Rs 75

So his savings = S1 = 100-75 = Rs 25

income increases by 20%  → 100 + 100 x  20/100 =  Rs 120

and his expenditure increases by 10% → 75 + 75 x 10 /100  = Rs 82.5

So his savings = S2 = 120 - 82.5 = Rs  37.5

Increment in savings = S2-S1 = 37.5 - 25 = Rs 12.5

percentage increase = 12.5 / 25 x 100 = 50 %