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      Question

      Monthly income of A is Rs. 6000 and he saves 25% 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 19.5% increase Correct Answer Incorrect Answer
      B 10.5% decrease Correct Answer Incorrect Answer
      C 16.5% increase Correct Answer Incorrect Answer
      D 17.5% decrease Correct Answer Incorrect Answer
      E 9.5% increase Correct Answer Incorrect Answer

      Solution

      Monthly savings and expenditure of A initially is Rs. 1500 and Rs. 4500, respectively. Monthly expenditure of A now = 0.65 × 4500 = Rs. 2925 Monthly savings of A now = 1.35 × 1500 = Rs. 2025 Monthly income of A now = 2925 + 2025 = Rs. 4950 Desired percentage decrease = [(6000 – 4950)/6000] × 100 = 17.5%

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