Ramesh spends 60% of his income. If his income is increased by 30% and his expenditure is increased by 20%, then the percentage increase in the savings of Ramesh will be:
- A50%
- B35%
- C45%
- D30%
Solution & Step-by-step Explanation
Let Ramesh's initial income be ₹100.
Initial Expenditure=60% of 100=₹60
Initial Savings=Income−Expenditure=100−60=₹40
Now, tracking changes:
New Income=100×(1+
100
30
)=₹130
New Expenditure=60×(1+
100
20
)=60×1.2=₹72
New Savings=New Income−New Expenditure=130−72=₹58
Let's find the percentage increase in savings:
Increase in Savings=58−40=₹18
Percentage Increase=
Initial Savings
Increase
×100=
40
18
×100=45%
Initial Expenditure=60% of 100=₹60
Initial Savings=Income−Expenditure=100−60=₹40
Now, tracking changes:
New Income=100×(1+
100
30
)=₹130
New Expenditure=60×(1+
100
20
)=60×1.2=₹72
New Savings=New Income−New Expenditure=130−72=₹58
Let's find the percentage increase in savings:
Increase in Savings=58−40=₹18
Percentage Increase=
Initial Savings
Increase
×100=
40
18
×100=45%