By Mansi Yadav

Verified by Ajay Kumar

The monthly income of Suresh is ₹18,000, and his monthly expenditure is ₹12,000. Next year, his income increases by 20% and his expenditure increases by 15%. Find the percentage increase in his savings.

  1. 15%

  2. 25%

  3. 30%

  4. 40%

Answer: C

Solution

Solution: Initial savings \(=18000-12000=6000\). New income \(=18000\times1.20=21600\). New expenditure \(=12000\times1.15=13800\). New savings \(=21600-13800=7800\). Percentage increase \(=\frac{7800-6000}{6000}\times100=30\%\). Trick: Calculate the increase in savings over the original savings, not over the income.

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