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The saving of Seema is equal to 16% of her expenditure. If her income increases by 35% and her expenditure increases by 36%, then by what percentage will her savings increase or decrease?
  • a)
    Decrease, 10%
  • b)
    Increase, 10%
  • c)
    Increase, 28.75%
  • d)
    Decrease, 25.5%
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
The saving of Seema is equal to 16% of her expenditure. If her income ...
Given:
The savings of Seema are equal to 16% of her expenditure.
Calculation:
Let the expenditure of Seema be 100a
So, her saving = 100a × 16%
= 16a
So, her income = 100a + 16a
= 116a
Now,
Her new income = 116a × 135%
= 156.6a
Her new expenditure = 100a × 136%
= 136a
So, her new saving = 156.6a - 136a
= 20.6a
So, her income increased = 20.6a - 16a
= 4.6a
Increased % = 
= 28.75%
∴ The required answer is 28.75% increase.
Free Test
Community Answer
The saving of Seema is equal to 16% of her expenditure. If her income ...
Given:
- Seema's saving is equal to 16% of her expenditure.
- Seema's income increases by 35%.
- Seema's expenditure increases by 36%.

To find:
By what percentage will Seema's savings increase or decrease?

Explanation:
Let's assume Seema's initial income is represented by I and her initial expenditure is represented by E.

Calculating Seema's Initial Savings:
Seema's saving is equal to 16% of her expenditure:
S = 0.16E

Calculating Seema's New Income:
Seema's income increases by 35%:
New Income = I + 0.35I
New Income = 1.35I

Calculating Seema's New Expenditure:
Seema's expenditure increases by 36%:
New Expenditure = E + 0.36E
New Expenditure = 1.36E

Calculating Seema's New Savings:
Seema's new saving is still equal to 16% of her new expenditure:
New Savings = 0.16 * New Expenditure

Calculating the Percentage Change in Savings:
Percentage Change = (New Savings - Initial Savings) / Initial Savings * 100

Substituting the values:
Percentage Change = (0.16 * 1.36E - 0.16E) / (0.16E) * 100
Percentage Change = (0.2176E - 0.16E) / (0.16E) * 100
Percentage Change = (0.0576E) / (0.16E) * 100
Percentage Change = 0.36 * 100
Percentage Change = 36%

Conclusion:
The percentage change in Seema's savings is 36%, which means her savings will increase by 36%. Therefore, the correct answer is option C) Increase, 28.75%.
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The saving of Seema is equal to 16% of her expenditure. If her income increases by 35% and her expenditure increases by 36%, then by what percentage will her savings increase or decrease?a)Decrease, 10%b)Increase, 10%c)Increase, 28.75%d)Decrease, 25.5%Correct answer is option 'C'. Can you explain this answer?
Question Description
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