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Raman spends 80% of his income. If his income is increased by 25% and the expenditure increase by 10%, then what will be the percentage increase in his savings?

Raman spends 80% of his income. If his income is increased by 25% and the expenditure increase by 10%, then what will be the percentage increase in his savings?
1). 17
2). 70
3). 77
4). 85

This Question has 2 answers.

Let the income of Raman be Rs. 100

According to the problem statement

Amount to be spend by Raman can be given as

Amount spent = 100 × (80/100) = Rs. 80

Now the savings is 100 – 80 = Rs. 20

If income increased by 25%, new income will be

New income = 100 × (1 + 25/100) = Rs. 125

Expenditure increased by 10% can be given as

final expenditure = 80 × (1 + 10/100) = 80 × 1.1 = Rs. 88

Savings can be given as 125 – 88 = 37

Increase in saving is 37 – 20 = Rs. 17

percentage increase in savings can be given as = 17 × 100/20 = 85%

The increase in savings is 85%

Let the income of Raman be Rs. 100

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According to the problem statement

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Amount to be spend by Raman can be given as

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Amount spent = 100 × (80/100) = Rs. 80

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Now the savings is 100 – 80 = Rs. 20

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If income increased by 25%, new income will be

\n\n

New income = 100 × (1 + 25/100) = Rs. 125

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Expenditure increased by 10% can be given as

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⇒ final expenditure = 80 × (1 + 10/100) = 80 × 1.1 = Rs. 88

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Savings can be given as 125 – 88 = 37

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Increase in saving is 37 – 20 = Rs. 17

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⇒ percentage increase in savings can be given as = 17 × 100/20 = 85%

\n∴ The increase in savings is 85%

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