A man spends 75% of his income. His income increased by 20% and his expenditure also increases by 10%. The percentage increase in his savings is:
Answer & explanation
Correct answer: option 2
75% = \(\frac{3}{4}\)
400 (Income) → 300 (Exp.) 100 (Savings)
↓ ↓
20% 10%
↓ ↓
480 330
= 480 - 330 = 150 (new savings)
Change in savings = 50% increased