Question

Radha saves 25% of her income. If her expenditure increases by 20% and her income increases by 29%, then her savings increase by;
1. 56%
2. 70%
3. 52%
4. 65%

Answer 1

Correct Answer - Option 1 : 56%

Given:

Radha saves 25% of her income.

Her expenditure and income increases by 20% and 29% respectively

Concept used:

Saving = Income – Expenditure

Calculation:

Let the income of Radha is 100 unit

According to question

The present saving of Radha = 100 × 25%

⇒ 25 unit

The present expenditure of Radha = 100 – 25

⇒ 75 unit

Now,

The income increases by 29% and expenditure increases by 20%

Then

The new income = 100 + (100 × 29%)

⇒ 100 + 29

⇒ 129 unit

The new expenditure = 75 + (75 × 20%)

⇒ 75 + 15

⇒ 90 unit

The new saving = 129 – 90

⇒ 39 unit

The saving increases = 39 – 25 

⇒ 14 unit

Increases percent of saving = (14/25 × 100)

⇒ 56%

∴ Her saving increases by 56%