A's monthly salary was ₹40000 and he used to save ₹10000 per month. His salary increased by 25% and expenditure increased by 15%. By what percent his savings increased?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 55%
Savings are what is left of the salary after the expenditure, so find the old and new expenditure first.
Old expenditure: ₹40000 − ₹10000 = ₹30000
New salary (25% more): ₹50000
New expenditure (15% more): ₹34500
New savings: ₹50000 − ₹34500 = ₹15500
Increase in savings: ₹5500 on ₹10000, that is 55%