Q. A man's expenditure is 75% of his income. If his income increases by 20% while expenditure remains unchanged, what percentage of his new income does he save?
β
Correct Answer: (C)
37.5%
Explanation: Assume income = βΉ100. Expenditure = βΉ75. New income = βΉ120. Savings = βΉ45. Savings percentage = (45/120) × 100 = 37.5%.
Explanation by: Mr. Dubey
Assume income = βΉ100. Expenditure = βΉ75. New income = βΉ120. Savings = βΉ45. Savings percentage = (45/120) × 100 = 37.5%.