The monthly income of a person was ₹40,000. He used to save 25% of his income. His nominal income increases by 15% and his nominal expenditure increases by 20%. What is the percentage change in his nominal savings?

0%

25% =  \(\frac{1}{4}\) , 15% = \(\frac{3}{20}\) & 20% = \(\frac{1}{5}\)

Total Income = 40,000

Saving = \(\frac{1}{4}\) × 40,000 = 10,000

Expenditure = 40,000 - 10,000 = 30,000

Increased Income = \(\frac{23}{20}\) × 40,000

= 46000

Increased Expenditure =  \(\frac{6}{5}\) × 30,000 = 36000

New saving = 46000 - 36000 = 10,000

Old and New saving is same .

So Percentage increase =  0%