Question

Dolly's income is Rs. 25000 per month. She saves 11% of her income. If her income increases by 15%, then she reduces her savings percent by 3. By what percent is her current savings less than her earlier savings?
1. 14.88%
2. 16.36%
3. 15.56%
4. 17.57%
5. 18.66%

Answer 1

Correct Answer - Option 2 : 16.36%

Given:

Dolly's income per month = Rs. 25000

The previous her saving = 11% of her income

Increased by her income = 15%

Numerical decrease in her saving% = 3

Formula Used:

Decrease in percentage = {(Decrease in value)/(Base Value)} × 100

Calculation:

Her saving = 11% of Rs. 25000

⇒ (11/100) × Rs. 25000

⇒ Rs. 2750

Incresed income = (100 + 15)% of Rs. 25000

⇒ 115% × Rs. 25000

⇒ (115/100) × Rs. 25000

⇒ Rs. 28750

Now her new saving = (11 - 3)% of Rs. 28750

⇒ 8% of Rs. 28750

⇒ (8/100) × Rs. 28750

⇒ Rs. 2300

Decrease in saving = Rs. (2750 - 2300)

⇒ Rs. 450

Percentage decrease = (450/2750) × 100

⇒ 180/11

⇒ 16.36%

∴ Her current savings will be 16.36% less than her earlier savings.