The monthly income of a person was Rs87,500 and his monthly expenditure was Rs50,000. Next year his income increased by 33% and his expenditure increased by 18%. The % increase in his savings was?

Options

A. 0.48
B. 0.53
C. 0.61
D. 0.5

Answer

To solve the problem, we need to calculate the percentage increase in savings after the income and expenditure changes. Let's break it down step by step.

### Step 1: Calculate Initial Savings
The initial savings can be calculated by subtracting the monthly expenditure from the monthly income.

**Initial Income = Rs. 87,500**
**Initial Expenditure = Rs. 50,000**
**Initial Savings = Initial Income - Initial Expenditure**
**Initial Savings = 87,500 - 50,000 = Rs. 37,500**

### Step 2: Calculate New Income After Increase
Next, we calculate the new income after a 33% increase.

**Percentage Increase = 33%**
**New Income = Initial Income + (33% of Initial Income)**
**New Income = 87,500 + (33/100 * 87,500)**
**New Income = 87,500 + 28,875 = Rs. 116,375**

### Step 3: Calculate New Expenditure After Increase
Now, we calculate the new expenditure after an 18% increase.

**Percentage Increase = 18%**
**New Expenditure = Initial Expenditure + (18% of Initial Expenditure)**
**New Expenditure = 50,000 + (18/100 * 50,000)**
**New Expenditure = 50,000 + 9,000 = Rs. 59,000**

### Step 4: Calculate New Savings
Now we can find the new savings by subtracting the new expenditure from the new income.

**New Savings = New Income - New Expenditure**
**New Savings = 116,375 - 59,000 = Rs. 57,375**

### Step 5: Calculate Increase in Savings
Next, we find the increase in savings by subtracting the initial savings from the new savings.

**Increase in Savings = New Savings - Initial Savings**
**Increase in Savings = 57,375 - 37,500 = Rs. 19,875**

### Step 6: Calculate Percentage Increase in Savings
Finally, we calculate the percentage increase in savings.

**Percentage Increase = (Increase in Savings / Initial Savings) * 100**
**Percentage Increase = (19,875 / 37,500) * 100**
**Percentage Increase = 0.53 * 100 = 53%**

Thus, the percentage increase in savings is **53%**.

---