Question

    A person’s salary rose by 50%. In reaction, he decided to

    raise his spending by 30%. If he used to save 20% of his income earlier, what is the percentage growth in his savings now?
    A 130% Correct Answer Incorrect Answer
    B 100% Correct Answer Incorrect Answer
    C 165% Correct Answer Incorrect Answer
    D 145% Correct Answer Incorrect Answer

    Solution

    ATQ,

    Let the original salary be Rs. 100x

    Earlier savings = 100x × 0.20 = Rs. 20x

    Earlier expenditure = 100x − 20x = Rs. 80x

    New expenditure = 80x × 1.30 = Rs. 104x

    New salary = 100x × 1.50 = Rs. 150x

    New savings = 150x − 104x = Rs. 46x

    Required percentage increase in savings = (46x−20x)/20x × 100 = 130%

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