Ravi spends 75% of his income. His income rises by 20% and his expenditure rises by 10%. By what percent do his savings increase?
A. 45%
B. 50%
C. 30%
D. 40%
A. 45%
B. 50%
C. 30%
D. 40%
Best answer
Answer: B. 50%
Answer: (B) 50%
Take income = 100: expenditure = 75, savings = 25.
New income = 120, new expenditure = 75 × 1.1 = 82.5, new savings = 37.5.
Increase = 12.5 on 25 = 50%.
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