Given below are two statements:
Statement (I): A man sells his goods at 10% profit. If he sells his goods at 15% profit, he gets 160 more. The cost price of his goods is t 4.200.
Statement (II): A man spends 80% of his earnings. His earnings increased by 25% and his expenses increased by 20%. The man's savings thus increased by 45%.
In the light of the above statements, choose the correct answer from the options given below:

Correct option is D

Given,
A man sells his goods at 10% profit. When he sells his goods at 15% profit, he gets Rs. 160 more.
Suppose, that the cost price is y. Then the sells price,
SP = (10 / 100) × y
When he sells his goods at 15% profit, he gets Rs. 160 more. Thus,
(15 / 100) × y = (10 / 100) × y + 160
15y - 10y = 16000
y = Rs. 3200
Hence, the statement 1 is false.
Now statement 2,
A man spends 80% of his earnings. Suppose, he earns Rs. 100. Then, expenses will be Rs. 80 and saving will be Rs. 20.
New earning = 100 + [(25 / 100) × 100] = 125
New expenses= 80 + [(20 / 100) × 80] = 96
So his new saving = 125 - 96 = 29
The percentage increase of this saving comparing with old savings= (29−20)/20×100=45%
Therefore, the second statement is also true.