Question

A man usually spends 60% of his income every month and saves the rest. If his income increases by 20% and his expenses also increases by 10 %, Find the percentage of change in his savings.

Answer 1

Let income of person = Rs. 100

Spent on different expenses = Rs. 60

Savings = Rs. 100 - Rs. 60 = Rs. 40

Now, income after increment of 20 % = $100+\frac{20}{100}\times 100=Rs.120$

Expenses after increment of 10 % = 84 Rs.

New saving = 120-84= Rs. 36

Now, percentage of decrease in savings = $\left(\frac{40-36}{40}\right)\times 100=10$ %