Mr. Singh's monthly income is Rs 40,500 and his monthly expenditure is Rs 30,500. Next year his income will increase by 12% and expenditure will increase by 6%, then by what percentage will his savings increase?
Income= Rs 40,500 Expenditure= Rs 30,500 Current Savings = Rs 40,500 - Rs 30,500 = Rs 10,000 New Income = 40, 500 × 1.12 = 45,360 New Expenditure = 30, 500 × 1.06 = 32,330 New Savings = 45360 -32330 = 13030 Percentage Increase in Savings: Increase= 13030- 10,000 =3030 Percentage Increase= 3030/ 10,000 × 100 = 30.3% Mr. Singh's savings will increase by 30.3% next year.
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