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Rao spends 85% of his income. If his income increases by 25% and his expenditure by 20%, his savings will increase by __________ (to two decimal place
Question

Rao spends 85% of his income. If his income increases by 25% and his expenditure by 20%, his savings will increase by __________ (to two decimal places).

A.

45.64%

B.

51.74%

C.

48.62%

D.

53.33%

Correct option is D

Present Income 100, Then Increase income 125
Present Expenditure 85, Then Increase expenditure 102
Present saving 15, then increase saving = 125 - 102 = 23
Increased Saving = 23 - 15 = 8
Increased Saving % = 8/15 x 100 = 53.333..

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