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    Question

    The ratio of income and expenditure of a man is 5 : 3,

    respectively. If the income and expenditure of the man are increased by 20% and 25% respectively, then find the percentage increase in the savings of the man.
    A 10% Correct Answer Incorrect Answer
    B 12.5% Correct Answer Incorrect Answer
    C 15% Correct Answer Incorrect Answer
    D 20% Correct Answer Incorrect Answer

    Solution

    Let the income of the man be Rs. ‘5x’ So, expenditure of the man = Rs. ‘3x’ So, savings of the man = 5x – 3x = Rs. ‘2x’ New income of the man = 5x × 1.2 = Rs. ‘6x’ So, new expenditure of the man = 3x × 1.25 = Rs. ‘3.75x’ So, new saving = 6x – 3.75x = Rs. ‘2.25x’ So, required percentage increase
    = {(2.25x – 2x) / 2x} × 100
    = 12.5%

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