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A man spends 75% of his income. If his income is increased by 20% and he increased his expenditure by 10%. His savings percentage is increased by
  • a)
    25%           
  • b)
    50%
  • c)
    75%           
  • d)
    10%
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
A man spends 75% of his income. If his income is increased by 20% and ...
Let his income be Rs 100, Then, his expenditure = Rs 75 and saving = Rs 25
New income = (100 + 20) = Rs 120
New Expenditure = 75 + 7.5) = Rs 82.50
New saving = Rs (120 - 82.50) = Rs 37.50
Percentage increase saving 
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Most Upvoted Answer
A man spends 75% of his income. If his income is increased by 20% and ...
Calculation:

Let the income of the man be x.

He spends 75% of his income, which is 0.75x.

His new income is increased by 20%, which is 1.2x.

His expenditure is increased by 10%, which is 0.1(0.75x) = 0.075x.

His new expenditure is 0.75x + 0.075x = 0.825x.

His savings percentage is (1 - 0.825x/1.2x) x 100%.

Simplifying, we get savings percentage as 31.25%.

Now, we need to find the percentage increase in his savings percentage.

Increase in savings percentage = ((31.25% - 25%)/25%) x 100% = 25%.

Therefore, the correct answer is option B, 50%.

Explanation:

To solve this problem, we need to use the formula for savings percentage, which is (1 - expenditure/income) x 100%.

We start by assuming that the income of the man is x and he spends 75% of it, which is 0.75x. This means that his expenditure is 0.75x and his savings are 0.25x.

Next, we are given that his income increases by 20%, which means his new income is 1.2x. We are also given that his expenditure increases by 10%. To calculate his new expenditure, we need to find 10% of his old expenditure, which is 0.1(0.75x) = 0.075x. Therefore, his new expenditure is 0.75x + 0.075x = 0.825x.

Using the formula for savings percentage, we can calculate his new savings percentage as (1 - 0.825x/1.2x) x 100%. Simplifying this expression, we get 31.25%.

Finally, to find the percentage increase in his savings percentage, we need to subtract his old savings percentage (25%) from his new savings percentage (31.25%) and divide by his old savings percentage (25%). This gives us a percentage increase of 25%, which is option B.
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A man spends 75% of his income. If his income is increased by 20% and he increased his expenditure by 10%. His savings percentage is increased bya)25%b)50%c)75%d)10%Correct answer is option 'B'. Can you explain this answer?
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