Q1. A person earns ₹16,000 per month and spends 80% of his income and saves the remaining amount. If his income increases by 20% and expenditure by 10%, find the percentage of increase in his savings.
- A. 140%
- B. 90%
- C. 120%
- D. 60%
Solution
Initial income = 16000. Exp = 80% = 12800. Savings = 3200. New income = 16000 * 1.20 = 19200. New Exp = 12800 * 1.10 = 14080. New savings = 19200 - 14080 = 5120. Increase in savings = 5120 - 3200 = 1920. % Increase = (1920 / 3200) * 100 = 60%.