The monthly income of a person was Rs. 12,000 and his monthly expenditure was Rs. 8,000. Next year, his income increased by 10% and his expenditure by 8%. Find the percentage increase in his savings.

Question

Question

This question was previously asked in

SSC CGL 2023 Tier-I Official Paper (Held On: 21 Jul 2023 Shift 1)

Answer 1

Given:

Monthly income = Rs 12,000

Monthly expenditure = Rs 8,000

Increase in income after a year = 10%

Increase in expenditure after a year = 8%

Concept Used:

New Amount = Original Amount + Percentage of Original Amount

Savings = Income – Expenditure

Calculation:

Savings before increase = 12000 – 8000 = Rs 4,000

Increase in income after a year = 12000 + 10% of 12000

Increase in income = 12000 + 1200 $\frac{12}{100} \times 12000$ = 12000 + 1200 = Rs 13200

Increase in expenditure = 8000 + 8% of 8000

Increase in expenditure = 8000 + 640 = Rs 8640

Savings after increase = 13200 – 8640 = Rs 4560

Increase in savings = Rs 4560 – 4000 = Rs 560

Savings percentage increase = 560/4000 × 100 $\frac{940}{2000} \times 100 = 47$ %

= 14%

Hence, the percentage increase in savings is 14%.