111.
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
Answer: C
The income of person be Rs \(y\)
So his expenditure be 75% of income which is \(= 0.75y\)
Saving \(= y- 0.75y = 0.25y\)
Now after increment of 20 % in income the new income becomes \(= 1.2y\)
Given that bew expenditure is 10% more than previous one.So , new expenditure is \(= 1.1 \times 0.75y = 0.825y\)
New savings \(= 1.2y - 0.825y = 0.375y\)
Percentage increase in savings \(= \frac{0.375y-0.25y}{0.25y} \times 100 = 50%\)
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