A man spends 75% of his income. If his income increases by 20% and his expenditure increase by 10%, then find the percentage increase in his savings. Ops: A. 40% B. 20% C. 50% D. 10%
Question
A man spends 75% of his income. If his income increases by 20% and his expenditure increase by 10%, then find the percentage increase in his savings. Ops: A. 40% B. 20% C. 50% D. 10%
Solution
Let's solve this step by step:
Step 1: Let's assume the man's initial income is 100 (this makes calculations easier and doesn't affect the percentage result).
Step 2: According to the problem, he spends 75% of his income, so his expenditure is 75 and his savings are 25 (100 - 75).
Step 3: His income increases by 20%, so his new income is 120 (100 + 20% of 100).
Step 4: His expenditure increases by 10%, so his new expenditure is 82.5 (75 + 10% of 75).
Step 5: His new savings are now 37.5 (120 - 82.5).
Step 6: To find the percentage increase in his savings, we subtract his original savings from his new savings, divide by his original savings, and then multiply by 100.
So, ((37.5 - 25) / 25) * 100 = 50%.
Therefore, the percentage increase in his savings is 50%, which corresponds to option C.
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