Question

A woman spends 90% of her income. If her income is increased by 15% and expenditure is decreased by 5% then find % change in her savings?
1. 95%
2. 195%
3. 185%
4. 85%

Answer 1

Correct Answer - Option 2 : 195%

Given:

A Woman spends 90% of her income.

Her income is increased by 15% and she decreases her expenditure by 5%

Formula Used:

Income = Expenditure + Saving

Calculation:

Let's assume the income of the woman be Rs. 100

So, if she spends 90% of her income i.e.,

Her expenditure = 100 × (90/100) = Rs. 90

Her savings will be = Rs.100 - Rs. 90 = Rs. 10

Now, her income increases by 15%

⇒ New income = 100 + 100 × (15/100)

⇒ 100 + 15

⇒ Rs.115

And Expenditure decreases by 5%

So, New expenditure = 90 - (5/100) × 90

⇒ 90 - 4.5 = Rs. 85.5

So, Her new savings = Rs. 115 - Rs. 85.5 = Rs. 29.5

Now, the increase in her savings = Rs. 29.5 - Rs. 10 = Rs. 19.5

So, the % increase will be,

⇒ (19.5/10) × 100 = 195%

∴ The percentage increase in her savings is 195%