By Mansi Yadav

Verified by Ajay Kumar

The monthly income of Anita is ₹24,000, and her monthly expenditure is ₹16,000. If her income increases by 25% and her expenditure increases by 10%, find the percentage increase in her savings.

  1. 40%

  2. 75%

  3. 80%

  4. 55%

Answer: D

Solution

Solution: Initial savings \(=24000-16000=8000\). New income \(=24000\times1.25=30000\). New expenditure \(=16000\times1.10=17600\). New savings \(=30000-17600=12400\). Increase in savings \(=12400-8000=4400\). Percentage increase \(=\frac{4400}{8000}\times100=55\%\). Trick: Calculate the increase using the original savings as the base, not the original income.

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