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The monthly income of a person was Rs. 1350 and his monthly expenses were Rs. 900. Next year, his income increased by 14% and expenses decreased by 7% only. Find the percentage increase in the savings.  
  • a)
    7%
  • b)
    21%
  • c)
    28%
  • d)
    56%
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
The monthly income of a person was Rs. 1350 and his monthly expenses w...
Old savings = Rs. (1350 - 900) = Rs. 450


New savings = Rs. (1539 - 837) = Rs. 702
%age of increased savings 
Free Test
Community Answer
The monthly income of a person was Rs. 1350 and his monthly expenses w...
Given:
Monthly income = Rs. 1350
Monthly expenses = Rs. 900

To find:
Percentage increase in savings

Solution:
Step 1: Calculate the savings:
Savings = Income - Expenses

Savings = Rs. 1350 - Rs. 900 = Rs. 450

Step 2: Calculate the new income:
The income increased by 14%.
New income = Old income + (14% of old income)

New income = Rs. 1350 + (14/100) * Rs. 1350
New income = Rs. 1350 + Rs. 189
New income = Rs. 1539

Step 3: Calculate the new expenses:
The expenses decreased by 7%.
New expenses = Old expenses - (7% of old expenses)

New expenses = Rs. 900 - (7/100) * Rs. 900
New expenses = Rs. 900 - Rs. 63
New expenses = Rs. 837

Step 4: Calculate the new savings:
New savings = New income - New expenses

New savings = Rs. 1539 - Rs. 837
New savings = Rs. 702

Step 5: Calculate the percentage increase in savings:
Percentage increase in savings = (New savings - Old savings) / Old savings * 100

Percentage increase in savings = (Rs. 702 - Rs. 450) / Rs. 450 * 100
Percentage increase in savings = 252 / 450 * 100
Percentage increase in savings ≈ 56%

Therefore, the percentage increase in the savings is approximately 56%. Answer option D is correct.
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