A man spends $\frac{2}{3}rd$ of his income. If his income increases by 14% and the expenditure increases by 20%, then the percentage increase in his savings will be
Answer & explanation
Correct answer: option 2
Let the income of the man = 300
Expenditure of the man = 300 × \(\frac{2}{3}\) = 200
Savings of the man = 300 – 200 = 100
New , Increased income of the man = 300 × \(\frac{114}{100}\)= 342
New expenditure of the man = 200 ×\(\frac{120}{100}\)= 240
New saving of the man = 342 – 240 = 102
Required percentage =\(\frac{102-100}{100}\) × 100 = 2%