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A man spends 75% of his income and saves the rest. If his income increases by 50% and spending increases by 80%, then what is the percentage change in his savings?
  • a)
    40% decrease
  • b)
    50% increase
  • c)
    50% decrease
  • d)
    40% increase
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
A man spends 75% of his income and saves the rest. If his income incre...
Let the old salary be s.
Expenditure = 75% = 3s/4
Savings = 25% = s/4
New salary = s + 50% = s + s/2 = 3s/2.
New Expenditure = 3s/4 + 80% = 3s/4 × (1 + 80/100) = 3s/4 × (9/5) = 27s/20.
New savings = 3s/2 - 27s/20 = 3s/20.
Change in savings: 3s/20 - s/4 = -2s/20 = -s/10
Savings has decreased.
�crease = 100 × (-s/10)/(s/4) = 40%
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A man spends 75% of his income and saves the rest. If his income increases by 50% and spending increases by 80%, then what is the percentage change in his savings?a)40% decreaseb)50% increasec)50% decreased)40% increaseCorrect answer is option 'A'. Can you explain this answer?
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