Question

Anas used to save 20% of his salary. When his salary increased by 20%, his expenses also increased by 25% of his earlier expenses. How much percentage of his salary does he save now?

• A. 15.66%
• B. 16.67%
• C. 18.5%
• D. 16%

Answer 1

The correct option is B 16.67%

We can solve this by either considering the salary of Anas as x or ₹100 , since we are finding %.
Let us consider his salary to be ₹100.
Savings = 20%
Expenditure = 100 - 20 = 80% = $\frac{80}{100}\times 100$ = ₹80
Increase in salary = 20% = $\frac{20}{100}\times 100$ = ₹20
New salary = ₹100 + ₹20 = ₹120
Increase in expenditure = 25% = $\frac{25}{100}\times 80$ = ₹20
New expenditure = ₹80 + ₹20 = ₹100
New savings = ₹120 - ₹100 = ₹20
Savings % = $\frac{20}{120}\times 100$ = 16.67%