Question

If Radha saves 25% of her income, if the expenditure is increased by 20% and income is increased by 29%. Find change% in saving.

Answer 1

56%

Answer 2

Let Radha's income = I.

• Savings = 25% of I = 0.25I
• Expenditure = I − 0.25I = 0.75I

After the increases:

• New income = 1.29I
• New expenditure = 1.20 × 0.75I = 0.90I

Now, new saving = New income − New expenditure = 1.29I − 0.90I = 0.39I

Increase in savings = 0.39I − 0.25I = 0.14I

Percentage increase relative to original saving:

$$\text{Percentage increase} = \left(\dfrac{0.14I}{0.25I}\right) \times 100 = 56\%$$

Therefore, the percentage increase in saving is 56%.