Question

    An individual's monthly income was Rs. 27500 and his

    monthly expenses were Rs. 20000. In the following year, the income rose by 9% and expenses increased by 6%. What is the percentage rise in his savings?
    A 25% Correct Answer Incorrect Answer
    B 17% Correct Answer Incorrect Answer
    C 62% Correct Answer Incorrect Answer
    D 35% Correct Answer Incorrect Answer

    Solution

    ATQ,

    Initial savings = 27500 – 20000 = Rs. 7500

    New income = 1.09 × 27500 = Rs. 29975

    New expenses = 1.06 × 20000 = Rs. 21200

    New savings = 29975 – 21200 = Rs. 8775

    Percentage increase = [(8775 – 7500)/7500] × 100 = 17%

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