Question

A's month salary was ₹40000 and he used to save ₹10000 per month. His salary increased by 25% and expenditure increased by 15%. By what percent his savings increased ?

• A. 40%
• B. 50%
• C. 55%
• D. 60%

Answer 1

The Correct Option is C

A's initial monthly salary was ₹40000, with savings of ₹10000 per month. This means his expenditure was:

Expenditure = Salary - Savings = ₹40000 - ₹10000 = ₹30000

After a 25% salary increase, his new salary is:

New Salary = ₹40000 × 1.25 = ₹50000

With a 15% expenditure increase, his new expenditure is:

New Expenditure = ₹30000 × 1.15 = ₹34500

Therefore, his new savings amount to:

New Savings = New Salary - New Expenditure = ₹50000 - ₹34500 = ₹15500

The increase in savings is:

Increase in Savings = ₹15500 - ₹10000 = ₹5500

To find the percentage increase in savings:

Percentage Increase = (Increase in Savings / Original Savings) × 100 = (₹5500 / ₹10000) × 100 = 55%

Thus, his savings increased by 55%.