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: Option C
Explanation: Let Initial Income = 100.<br>Expenditure = 75, Savings = 100 - 75 = 25.<br>New Income = 100 + 20% of 100 = 120.<br>New Expenditure = 75 + 10% 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 = $(\frac{12.5}{25}) \times 100 = 50%$.