A man spends 60% of his salary. If his salary is increased by 30% then his expanditure also increased by 20%. Find the increase %/ decrease% of his saving.

Options

A. 0.45
B. 0.5
C. 0.6
D. 0.75

Answer

To solve the problem step by step, let's break it down:

### Step 1: Determine the initial salary and expenditure
Let’s assume the man's salary is 100 units (this makes calculations easier). According to the problem, he spends 60% of his salary.

- **Expenditure (EX)** = 60% of Salary = 60% of 100 = 60 units
- **Savings (SAV)** = Salary - Expenditure = 100 - 60 = 40 units

**Hint:** Start by assuming a simple value for the salary to make calculations straightforward.

### Step 2: Calculate the new salary after the increase
The salary is increased by 30%.

- **New Salary** = Original Salary + (30% of Original Salary)
- **New Salary** = 100 + (30% of 100) = 100 + 30 = 130 units

**Hint:** Remember to add the percentage increase to the original value to find the new amount.

### Step 3: Calculate the new expenditure after the increase
The expenditure also increases by 20%.

- **New Expenditure** = Original Expenditure + (20% of Original Expenditure)
- **New Expenditure** = 60 + (20% of 60)
- **20% of 60** = 12
- **New Expenditure** = 60 + 12 = 72 units

**Hint:** Use the same method as with salary to find the new expenditure after the increase.

### Step 4: Calculate the new savings
Now, we find the new savings after the salary and expenditure have increased.

- **New Savings (SAV)** = New Salary - New Expenditure
- **New Savings** = 130 - 72 = 58 units

**Hint:** Savings are calculated as the difference between income and expenditure.

### Step 5: Determine the change in savings
Now, we need to find out how much the savings have changed.

- **Change in Savings** = New Savings - Original Savings
- **Change in Savings** = 58 - 40 = 18 units

**Hint:** Subtract the original savings from the new savings to find the change.

### Step 6: Calculate the percentage change in savings
Finally, we calculate the percentage increase in savings.

- **Percentage Increase in Savings** = (Change in Savings / Original Savings) × 100
- **Percentage Increase in Savings** = (18 / 40) × 100 = 45%

**Hint:** To find the percentage change, divide the change by the original amount and multiply by 100.

### Conclusion
The increase in savings is **45%**.

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