Mr. X has a monthly income of $26,500 and his monthly expenditure is $20,500. The next year, his salary is increased by 12% and expenditure is increased by 6%. His savings increase by how much percent?

Question

Question

This question was previously asked in

SSC CGL 2022 Tier-I Official Paper (Held On : 05 Dec 2022 Shift 3)

Answer 1

Given:

Original income = $26,500

Original expenditure = $20,500

Percentage increase in income = 12%

Percentage increase in expenditure = 6%

Formula used:

Percentage of increase in his savings: (change in saving/original saving) × 100

Calculation:

Original saving = $(26,500 – 20,500)

⇒ $6,000

New income = original income + increase income = $26,500 + 12% of $26,500

⇒ $29,680

New expenditure = original expenditure + increase expenditure = $20,500 + 6% of $20,500

⇒ $21,730

New saving = new income – new expenditure = $(29,680 – $21,730)

⇒ $7950

Change in saving = new saving – original saving = $(7950 – 6,000) =

⇒ $1,950

Percentage of increase in his saving = (1950/6,000) × 100

⇒ 32.5%

∴ The required answer is 32.5%.

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