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A man spends 80% of his income and saves the rest. If his income and spending both increases by 10%, then what is the percentage change in his savings?
- A10% increase
- B5% decrease
- C5% increase
- D15% decrease
Answer not set
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CCommunity
Let,
Income of the man in Rs. = x
He spends 80%
∴ Amount of spend in Rs. = 0.80x
∴ Amount of savings in Rs. = x - 0.80x = 0.20x
If his income and spending both increases by 10%,
New amount of Income Rs. = 1.10x
New amount of spend in Rs. = (1.10) × (0.80x) = 0.88x
∴ New amount of savings in Rs. = 1.10x - 0.88x = 0.22x
∴ Percentage increase in savings= [(0.22x - 0.20x)/0.20x] × 100% = (0.02/0.20) × 100% = 10%
∴ 10% increase in savings
Income of the man in Rs. = x
He spends 80%
∴ Amount of spend in Rs. = 0.80x
∴ Amount of savings in Rs. = x - 0.80x = 0.20x
If his income and spending both increases by 10%,
New amount of Income Rs. = 1.10x
New amount of spend in Rs. = (1.10) × (0.80x) = 0.88x
∴ New amount of savings in Rs. = 1.10x - 0.88x = 0.22x
∴ Percentage increase in savings= [(0.22x - 0.20x)/0.20x] × 100% = (0.02/0.20) × 100% = 10%
∴ 10% increase in savings