Raj’s income is Rs 45,000 and his expenditure is Rs 33,000. IF his income is increased by 20% and expenditure by 12%, then what will be the percentage increase in saving?
Explanation:
- Raj's initial income: Rs 45,000.
- Initial expenditure: Rs 33,000.
- Initial savings: Income - Expenditure = Rs 45,000 - Rs 33,000 = Rs 12,000.
Now, calculate the increased income and expenditure:
- Income increase: 20% of Rs 45,000 = Rs 9,000.
- New income: Rs 45,000 + Rs 9,000 = Rs 54,000.
- Expenditure increase: 12% of Rs 33,000 = Rs 3,960.
- New expenditure: Rs 33,000 + Rs 3,960 = Rs 36,960.
- New savings: Rs 54,000 - Rs 36,960 = Rs 17,040.
Percentage increase in savings:
- Increase in savings = Rs 17,040 - Rs 12,000 = Rs 5,040.
- Percentage increase = (Rs 5,040 / Rs 12,000) * 100 = 42%.
Therefore, the correct option is:
- Option 4: 42%