A person saves 10% of his salary every month. If his salary increases by 12% and the expenditure increases by 10%, then what will be the change in his saving per month?
Answer & explanation
Answer: (b) 30% increase
Take the salary as ₹100: saving ₹10, spending ₹90. After the changes, salary is ₹112 and spending ₹99, so saving becomes ₹13 — a 30% rise on ₹10.
- Let salary = ₹100. Saving = ₹10, expenditure = ₹90.
- New salary = ₹112; new expenditure = 90 × 1.1 = ₹99.
- New saving = 112 − 99 = ₹13.
- Change = (13 − 10)/10 × 100 = 30% increase.
Remember · Percentage problems with several parts: assume a base of 100 and compute each part directly.
Question and answer: UPSC's provisional GS Paper II (2026, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·