Mr. X has a monthly income of 26,500 dollor and his monthly expenditure is 20,500 dollor. The next year, his salary is increased by 12% and expenditure is increased by 6%. His savings increase by how much percent?
Answer & explanation
Correct answer: option 1
Original saving = ( 26500 - 20500 ) = 6000
New income = original income + increase income
= 26500 + 12 % of 26500
= 29680
New expenditure = original expenditure + increase expenditure
= 20500 + 6% of Rs 20500
= 21730
New saving = new income – new expenditure
= ( 29680 - 21730 )
= 7950
Change in saving = new saving – original saving
= ( 7950 - 6000 )
= 1950
Percentage of increase in his saving = \(\frac{1950}{6000}\) × 100 = 32.5%