The annual earning of Mr. Sikkawala is Rs. 4 lakhs per annum for the first year of his job and his expenditure was 50%. Later on for the next 3 years his average income increases by Rs.40,000 per annum and the saving was 40%, 30% and 20% of the income. What is the percentage of his total savings over the total expenditure if there is no interest is applied on the savings for these four years?

(a) 49%

(b) 37%

(c) 87%

(d) 51%

**Ans**: (d) 51%

**Explanation**:

Increment in salary = \displaystyle\frac{40k}{400k}\times 100 = 10%

Let, initial salary = 100

Year | Salary | Savings % | Savings |

1 | 100 | 50% | 50 |

2 | 110 | 40% | 44 |

3 | 120 | 30% | 36 |

4 | 130 | 20% | 26 |

**For 4 years,**

Total salary = 100 + 110 +120 +130 +140 = 460

Total savings = 50 + 44 +36 + 26 = 156

∴ Total expenditure = 460 – 156 = 304

Now, \displaystyle\frac{\text{Savings}}{\text{Expenditure}}\times 100 = \displaystyle\frac{156}{304}\times 100 = 51%

**Note**: To get the answer we could use approximation. Denominator is slightly less than twice numerator. So, answer will be slightly more than 50%. From option we could choose 51% as the answer.

If you do the real calculation,

\displaystyle\frac{156}{304}\times 100 = 51.3157% ≈ 51%

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