The monthly income of Ramesh was Rs.16,500 and his monthly expenditure was Rs.10,500. Next year his income increased by 25% and his expenditure increased by 19%. Find the percentage increase in his saving.
Answer & explanation
Correct answer: option 4
Given ,
Income = 16500 , Expenditure = 10500
Saving = Income - Expenditure
= 16500 - 10500 = 6000
Saving % = \(\frac{6000}{16500}\) × 100 = 36.36%
New Income = 16500 + 25% of 16500 = 20625
New Expenditure = 10500 + 19% of 10500 = 12495
New saving = 20625 - 12495 = 8130
Percentage increase in saving = \(\frac{8130 - 6000}{6000}\)× 100
= 35.5%