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A man spends 75% of his income. His income increases by 25% and his expenditure also increases by 30%. Find the percentage increase in his savings. 
  • a)
    15%
  • b)
    14%
  • c)
    10%
  • d)
    12%
  • e)
    None of these
Correct answer is option 'C'. Can you explain this answer?
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A man spends 75% of his income. His income increases by 25% and his ex...
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A man spends 75% of his income. His income increases by 25% and his ex...
Given:
- A man spends 75% of his income.
- His income increases by 25% and his expenditure increases by 30%.

To Find: The percentage increase in his savings.

Solution:

Let's assume the man's income to be $100.

- His expenditure would be 75% of $100 = $75.
- His savings would be 25% of $100 = $25.

Now, after his income increases by 25%, his new income would be $125.

- His expenditure would increase by 30% of $75 = $22.5
- His new expenditure would be $75 + $22.5 = $97.5
- His new savings would be $125 - $97.5 = $27.5

Therefore, the increase in his savings would be $27.5 - $25 = $2.5

To calculate the percentage increase in savings, we use the formula:

Percentage increase = (Increase / Original value) x 100

- Increase = $2.5
- Original value = $25

Percentage increase = (2.5 / 25) x 100 = 10%

Hence, the percentage increase in his savings would be 10%.

Answer: Option (c) 10%.
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