Quantitative Aptitude Ques 1936

Question: A man spends 75% of his income. His income is increased by 20% and he increased his expenditure by 10%. His savings are increased by

Options:

A) $ 10 $ %

B) $ 25 $ %

C) $ 37\frac{1}{2} $ %

D) $ 50 $ %

Show Answer

Answer:

Correct Answer: D

Solution:

  • Let the income of man initially be Rs. 100. Expenditure = Rs. 75

$ \therefore $ Savings = Rs. 25 Now, increased income = 120% of 100 $ =\frac{120}{100}\times 100=Rs\text{. 120} $ Increased expenditure = 110% of 75 $ =\frac{110}{100}\times 75=Rs\text{. 82}\text{.5} $ New savings $ =Rs\text{. 120}-82\text{.5= Rs}\text{.}37\text{.5} $

$ \therefore $ Percentage increase in savings $ =\frac{37.5-25}{25}\times 100=50 $ %