Amit saves 20% of his income. If his income increases by 38% and expenditure increases by 60%, then by what per cent does his saving increase/decrease?
- A50% (increase)
- B100% (decrease)
- C22% (increase)
- D50% (decrease)
Solution & Step-by-step Explanation
Let the initial income of Amit be 100.
Initial Savings = 20% of 100=20
Initial Expenditure = Income−Savings=100−20=80
Now, let's apply the percentage changes:
New Income = 100×(1+0.38)=138
New Expenditure = 80×(1+0.60)=128
New Savings = New Income−New Expenditure=138−128=10
Comparing the new savings to the initial savings:
Decrease in Savings=20−10=10
Percentage Decrease=
20
10
×100=50%
Thus, his savings decrease by 50%.
Initial Savings = 20% of 100=20
Initial Expenditure = Income−Savings=100−20=80
Now, let's apply the percentage changes:
New Income = 100×(1+0.38)=138
New Expenditure = 80×(1+0.60)=128
New Savings = New Income−New Expenditure=138−128=10
Comparing the new savings to the initial savings:
Decrease in Savings=20−10=10
Percentage Decrease=
20
10
×100=50%
Thus, his savings decrease by 50%.