Question

Ashwin used to save 25% 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. 24.55%
• B. 21.875%
• C. 16.67%
• D. 18.845%

Answer 1

The correct option is B 21.875%

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 = 25%
Expenditure = 100 - 25 = 75% = $\frac{75}{100}\times 100$ = ₹75
Increase in salary = 20% = $\frac{20}{100}\times 100$ = ₹20
New salary = ₹100 + ₹20 = ₹120
Increase in expenditure = 25% = $\frac{25}{100}\times 75$ = ₹18.75
New expenditure = ₹75 + ₹18.75 = ₹93.75
New savings = ₹120 - ₹93.75 = ₹26.25
Savings % = $\frac{26.25}{120}\times 100$ = 21.875%