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      Question

      Monthly income of A is Rs. 6500 and he saves 36% of his

      monthly income. If monthly expenditure of A is decreased by 35% while his monthly savings is increased by 35% then find the increase or decrease in his monthly income.
      A 18.5% increase Correct Answer Incorrect Answer
      B 11.2% decrease Correct Answer Incorrect Answer
      C 16.5% increase Correct Answer Incorrect Answer
      D 12.6% decrease Correct Answer Incorrect Answer
      E 9.8% decrease Correct Answer Incorrect Answer

      Solution

      Monthly savings and expenditure of A initially is Rs. 2340 and Rs. 4160, respectively. Monthly expenditure of A now = 0.65 × 4160 = Rs. 3159 Monthly savings of A now = 1.35 × 2340 = Rs. 2704 Monthly income of A now = 3159 + 2704 = Rs. 5863 Desired percentage decrease = [(6500 – 5863)/6500] × 100 = 9.8%

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