Question

Stephan used to spend 70% of his salary. When his salary increased by 40%, his expenses also increased by 48% of his earlier expenses. How much percentage of his salary does he save now?

• A. 17.14%
• B. 18.34%
• C. 26%
• D. 28.44%

Answer 1

The correct option is C 26%

We can solve this by either considering the salary of Stephan as x or ₹100 , since we are finding %.
Let us consider his salary to be ₹100.
Expenditure = 70% = $\frac{70}{100}\times 100$ = ₹70
Increase in salary = 40% = $\frac{40}{100}\times 100$ = ₹40
New salary = ₹100 + ₹40 = ₹140
Increase in expenditure = 48% = $\frac{48}{100}\times 70$ = ₹33.6
New expenditure = ₹70 + ₹33.6 = ₹103.6
New savings = ₹140 - ₹103.6 = ₹36.4
Savings % = $\frac{36.4}{140}\times 100$ = 26%