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A man spends 80% of his income and saves the rest. If his income and spending both increases by 10%, then what is the percentage change in his savings?
  • a)
    10% increase
  • b)
    5% decrease
  • c)
    5% increase
  • d)
    15% decrease
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
A man spends 80% of his income and saves the rest. If his income and s...
Let,
Income of the man in Rs. = x
He spends 80%
∴ Amount of spend in Rs. = 0.80x
∴ Amount of savings in Rs. = x - 0.80x = 0.20x
If his income and spending both increases by 10%,
New amount of Income Rs. = 1.10x
New amount of spend in Rs. = (1.10) × (0.80x) = 0.88x
∴ New amount of savings in Rs. = 1.10x - 0.88x = 0.22x
∴ Percentage increase in savings= [(0.22x - 0.20x)/0.20x] × 100% = (0.02/0.20) × 100% = 10%
∴ 10% increase in savings.
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Most Upvoted Answer
A man spends 80% of his income and saves the rest. If his income and s...
Given:
- The man spends 80% of his income and saves the rest.
- His income and spending both increase by 10%.

To find:
- The percentage change in his savings.

Solution:
Let's assume the man's income is $100.

Step 1: Calculate the amount spent and saved before the increase.
- The man spends 80% of his income, which is 0.8 * $100 = $80.
- He saves the rest, which is $100 - $80 = $20.

Step 2: Calculate the new income and spending after the increase.
- The income increases by 10%, so the new income is $100 + 10% of $100 = $100 + $10 = $110.
- The spending also increases by 10%, so the new spending is $80 + 10% of $80 = $80 + $8 = $88.

Step 3: Calculate the new savings.
- The new savings is the difference between the new income and the new spending, which is $110 - $88 = $22.

Step 4: Calculate the percentage change in savings.
- The initial savings was $20 and the new savings is $22.
- The percentage change can be calculated using the formula: (new value - initial value) / initial value * 100.
- The percentage change in savings is ($22 - $20) / $20 * 100 = $2 / $20 * 100 = 0.1 * 100 = 10%.

Answer:
- The percentage change in the man's savings is a 10% increase.
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A man spends 80% of his income and saves the rest. If his income and spending both increases by 10%, then what is the percentage change in his savings?a)10% increaseb)5% decreasec)5% increased)15% decreaseCorrect answer is option 'A'. Can you explain this answer?
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