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The income of Raman is ₹68,800. He saves 18.5% of his income. If his income increases by 17% and expenditure increases by 25%, then his savings will:
Question

The income of Raman is ₹68,800. He saves 18.5% of his income. If his income increases by 17% and expenditure increases by 25%, then his savings will:

A.

increase by ₹2,325

B.

decrease by ₹2,322

C.

decrease by ₹2,325

D.

increase by ₹2,319

Correct option is B

Given
Initial income = ₹68,800
Initial savings percentage = 18.5%
Income increase = 17%
Expenditure increase = 25%
Formula Used
Income = Expenditure + Savings
Solution
Initial Savings = 68800 × 18.5100=12728\frac{18.5}{100} = 12728​​

Initial Expenditure = 68800 - 12728 = 56072
New Income = 68800 × 117100=80496\frac{117}{100} = 80496​​
New Expenditure = 56072 × 125100=70090 \frac{125}{100} = 70090​​
New Savings = 80496 - 70090 = 10406
Change in Savings = 12728 - 10406 = 2322
Since the new savings are less than the initial savings, there is a decrease of ₹2,322.
Final Answer
So the correct answer is (b)

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