The monthly income of Manisha was ₹1,20,000 and her monthly expenditure was ₹55,000. Next year, her income increased by 22% and her expenditure increase by 10%. Find the percentage increase in her savings (correct to 2 decimal place).
Answer & explanation
Correct answer: option 3
22% = \(\frac{11}{50}\) & 10% = \(\frac{1}{10}\)
Saving = 120000 - 55000 = 65000
New Income = 120000 + \(\frac{11}{50}\) × 120000 = 146400
New Expenditure = 55000 + \(\frac{1}{10}\) × 55000 = 60500
New saving = 146400 - 60500 = 85900
Percentage Increase in saving = \(\frac{85900-65000}{65000}\) × 100
= 32.1538%
= 32.15% (approx)