1. A man spends $75\%$ of his income. His income increases by $20\%$ and his expenditure increases by $10\%$. Find the percentage increase in his savings.
A) $30\%$
B) $40\%$
C) $50\%$
D) $60\%$
Correct Answer: C
Let Initial Income = $100$.<br>Expenditure = $75$, Savings = $100 - 75 = 25$.<br>New Income = $100 + 20\% \text{ of } 100 = 120$.<br>New Expenditure = $75 + 10\% \text{ of } 75 = 75 + 7.5 = 82.5$.<br>New Savings = $120 - 82.5 = 37.5$.<br>Increase in Savings = $37.5 - 25 = 12.5$.<br>Percentage Increase = $(\frac{12.5}{25}) \times 100 = 50\%$.


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