Question
A person earns ₹16,000 per month and spends 80% of his
income and saves the remaining amount. If his income increases by 20% and expenditure by 10%, find the percentage of increase in his savings.Solution
Initial income = ₹16,000 Initial expenditure = 80% of ₹16,000 = ₹12,800 Initial savings = ₹16,000 - ₹12,800 = ₹3,200 New income = ₹16,000 + 20% of ₹16,000 = ₹19,200 New expenditure = ₹12,800 + 10% of ₹12,800 = ₹14,080 New savings = ₹19,200 - ₹14,080 = ₹5,120 Increase in savings = ₹5,120 - ₹3,200 = ₹1,920 Percentage increase in savings = (₹1,920 / ₹3,200) × 100 = 60%
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