27. Kumar spends 75% of his income. His income is increased by 20% and he increased his expenditure by 10%. Find the percentage increase in his savings.
Answer :
Let original income = Rs. 100. Then, expenditure = Rs.75 and savings = Rs. 25.
New income = Rs.120 & New expenditure = Rs.[110/100 * 75] = Rs.165/2
New savings = Rs.[120-165/2] = Rs.75/2
Increase in savings = Rs.[75/2 - 25] = Rs. 25/2
Therefore, Increase% = [25/2 * 1/25 * 100]% => 50%
