A man saves a certain part of his monthly income so that he can purchase a bike in 30 months. Find the percent increase in his savings so that he can purchase the same bike in 24 months only.
Answer & explanation
Correct answer: option 1
Let the cost of bike = Rs.120
Now,
To purchase the bike in 30 months, savings should be = \(\frac{120}{30}\) = 4 Rs./mnt
To purchase the bike in 24 months, savings should be = \(\frac{120}{24}\) = 5 Rs./mnt
Increase in savings = 5 - 4 = 1 Rs./mnth
Saving increase percentage = \(\frac{1}{4}\) × 100% = 25%