Correct Answer - Option 2 : 43.3 percent
Given:
Suresh spends 70% of his income
Calculation:
Let Suresh's income be x
Expenditure of Suresh = 0.7x
⇒ Savings = x - 0.7x = 0.3x
Increased income = 1.2x
Increased expenditure = 0.77x
⇒ New savings = 1.2x - 0.77x = 0.43x
⇒ Increase in savings = 0.43x - 0.3x = 0.13x
% Increase in savings = (0.13x/0.3x) × 100 = 43.3
∴ Increase in savings = 43.3%