Practicing Success
Raghav spends 80% of his income. If his income increases by 12% and his expenditure increases by 17.5%, then what is the percentage decrease in his savings?% |
12% 10% 8% 15% |
10% |
80% = \(\frac{4}{5}\) & 12% = \(\frac{3}{25}\) Let income of Raghav = 100x Expenditure = \(\frac{4}{5}\) × 100x = 80x Saving = 100x - 80x = 20x Now, Increased income = 100x + \(\frac{3}{25}\) × 100x = 112x Increased Expenditure = 80x + \(\frac{17.5}{100}\) × 80x = 94x New saving = 112x - 94x = 18x Decrease in percentage of saving = \(\frac{20x - 18x }{20x}\) ×10 = 10% |