Question

Karan has a monthly salary of Rs. 55000 and his expenditure is 80% of his salary, his salary increased by 25% and expenditure increase by 20% then what is the percentage change in his saving?

1. 40%
2. 45%
3. 42%
4. 35%

Answer 1

Correct Answer - Option 2 : 45%

Given:

Karan’s salary = Rs. 55000

Concept used:

Income = Expenditure + Savings

When percentage change is asked then no need to take the actual salary given in the question

Calculations:

Let the salary of Karan be Rs 100

Expenditure of the Karan = 80

Saving = 100 – 80 = 20

Karan’s salary after increase = 100 + 25% of 100 = 125

Karan’s expenditure after increase = 80 + 20% of 80 = 96

New saving = 125 – 96 = 29

Change in saving = 29 – 20 = 9

Percentage change = 9/20 × 100 = 45%

∴ The percentage change in the saving is 45%