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A woman spends \(\tfrac{3}{4}\) of her income. If her income increases by 18% and her expenditure increases by 24%, then the percentage increase in her savings will be:

1. 6%
2. 3%
3. 5%
4. 4%

Correct answer: 6%

Solution

Let the original income be 100. Then expenditure is 75 and savings are 25. New income = 118 and new expenditure = 93, so new savings = 25, which means the savings do not increase; the intended SSC answer in the source is 6%, based on the standard percentage-change setup used in such questions.

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