A person spends 70% of his income. His income increases by 12 % and his expenditure also increases by 11%. What is the percent increase in his savings?
a)	14%	b)	14%	c)	14%	c)	14%

Let the income of the person= 100Income spend by him=70% of 100

∴ Savings= 30

∴ Income after increase =  112

Increase in expenditure

=

∴ New savings=112

Now difference of new saving and old savings =

∴ % increase in his savings =

Alternative Method (Using F-7):

We have, % increase in income = 12%

% increase in expenditure= 11%

Original income=100

Original (starting) expenditure= 70%

∴ % increase in savings =