-
A man spends 75% of his income. His income increases by 20% and his expenditure also increases by 10%. The percentage of increase in his savings is
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- 40%
- 30%
- 50%
- 25%
Correct Option: C
Man’s income = ₹ 100 (let)
Expenditure = ₹ 75
Savings = ₹ 25
| New income = | = ₹120 | 100 |
| New expenditure = | = ₹ 82.5 | 100 |
Savings = 120 – 82.5 = ₹ 37.5
Increase in savings = 37.5 – 25 = ₹ 12.5
∴ Increase per cent
| = | × 100 = 50% | 25 |
