Question

In March Rohan's monthly expenditure was $90\%$ of his monthly income. His monthly income increased by $30\%$ and his monthly expenditure increased by $20\%$ when compared to the previous month. Find the percentage increases in his monthly savings.

• A. $130\%$
• B. $120\%$
• C. $110\%$
• D. $125\%$

Answer 1

The correct option is B $120\%$

Let the salary be $100$.

Initial savings$=(100\%-90\%)100=Rs.10$.

New expenditure $=120\%\times Rs.90=Rs.108$

New income $=130\%\times 100=Rs.130$

Savings after increment$=Rs.130-Rs.108=Rs.22$

$\%$ of increase in saving$=\frac{22-10}{22}\times 100=120\%$.