Q546
Renu saves 20% of her income. If her expenditure increase by 20% and income increase by 29%, then her saving increase by:
A.
55%
B.
65%
AnswerC.
54%
D.
60%
Answer: Option B
Solution
Answer: Option B
Solution:
\begin{array}{*{20}{c}}
{{\text{Income}}}&{{\text{Expenditure}}}& = &{{\text{Saving}}} \\
\begin{gathered}
100 \hfill \\
\,\, \downarrow \hfill \\
129 \hfill \\
\end{gathered} &\begin{gathered}
80 \hfill \\
\, \downarrow \hfill \\
96 \hfill \\
\end{gathered} &{}&{\left. \begin{gathered}
20 \hfill \\
\, \downarrow \hfill \\
33 \hfill \\
\end{gathered} \right)13}
\end{array}Alternate Solution :
First, let's assume Renu's initial income is Rs. 100 (we can pick any number, 100 makes the math easier).
If she saves 20%, her initial savings are 20% of Rs. 100 = Rs. 20.
Her initial expenditure is then Rs. 100 (income) - Rs. 20 (savings) = Rs. 80.
Now, her expenditure increases by 20%. So, the increase in expenditure is 20% of Rs. 80 = Rs. 16.
Her new expenditure is Rs. 80 + Rs. 16 = Rs. 96.
Her income also increases, by 29%. So, the increase in income is 29% of Rs. 100 = Rs. 29.
Her new income is Rs. 100 + Rs. 29 = Rs. 129.
Her new savings are now Rs. 129 (new income) - Rs. 96 (new expenditure) = Rs. 33.
To find the percentage increase in savings, we compare the new savings to the old savings.
The increase in savings is Rs. 33 (new savings) - Rs. 20 (old savings) = Rs. 13.
The percentage increase in savings is (Increase in savings / Original savings) * 100 = (Rs. 13 / Rs. 20) * 100 = 65%.
Therefore, her saving increases by 65%.
The correct answer is Option B: 65%.