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:

A) \( \Large 37\frac{1}{2}\% \)

B) 0.5

C) 0.1

D) 0.25

Correct answer:
B) 0.5

Description for Correct answer:

Let the income be Rs.100

Amout spent = 75% = Rs.75

Therefore, savings = Rs.25

new income = \( 100 + \left(100 \times \frac{20}{100}\right) \)

new expenditure = 10% increase

(i.e) \(  \Large 75 + \left(75 \times \frac{10}{100}\right) \) = 82.5%

Therefore, new savings = Rs.120 - Rs.82.5 = Rs.37.5

Therefore, increase percent in savings = \( \Large \left(\frac{37.5-25}{25} \times 100\right) \)=50%



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