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    Mr. X has a monthly income of $26,500 and his monthly expenditure is $20,500. The next year, his salary is increased by 12% and expenditure is increas
    Question

    Mr. X has a monthly income of $26,500 and his monthly expenditure is $20,500. The next year, his salary is increased by 12% and expenditure is increased by 6%. His savings increase by how much percent?

    A.

    32.5%

    B.

    27.3%

    C.

    32.0%

    D.

    34.7%

    Correct option is A

    Given:
    Initial monthly income of Mr. X = $26,500
    Initial monthly expenditure of Mr. X = $20,500
    Salary increase = 12%
    Expenditure increase = 6%
    Formula Used:
    Savings = Income - Expenditure
    Percentage increase in savings = New SavingsOld SavingsOld Savings×100\frac{\text{New Savings} - \text{Old Savings}}{\text{Old Savings}} \times 100 
    Solution: 

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