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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 initial income be ‘x’
⇒ Savings = 0.25x and Spending = 0.75x    ----(1)
New income = x + 0.5x = 1.5x
New spending = 0.75x + 0.8 × 0.75x = 1.35x
⇒ New savings = 1.5x - 1.35x = 0.15x
From (1), it is clear that there is a decrease in saving.
∴ Required % decrease 
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Most Upvoted Answer
A man spends 75% of his income and saves the rest. If his income incre...
Calculation of the percentage change in savings:

Initial scenario:
- Income spent: 75%
- Savings: 25%

After the increase:
- Income increases by 50%, so new savings = 25% of 150% of initial income = 37.5%
- Spending increases by 80%, so new spending = 75% of 180% of initial income = 135%

Calculation of new savings:
New savings = 100% - 135% (new spending) = -35%

Percentage change in savings:
Percentage change = ((new savings - initial savings) / initial savings) * 100
Percentage change = ((-35% - 25%) / 25%) * 100 = -240%
Therefore, the percentage change in savings is a 40% decrease.
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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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