Shortcut Trick
Change in Savings = Change in Income − Change in Expenditure
Change in Income = −25% of ₹12,800 = −₹3,200
Change in Expenditure = −₹1,000
Change in Savings = −3,200 − (−1,000) = −3,200 + 1,000 = −₹2,200
∴ The correct answer is Decreased by ₹2,200.
Alternate Method
Given: Initial Income = ₹12,800 | Initial Expenditure = ₹4,000 | Income Decrease = 25% | Expenditure Decrease = ₹1,000
Formula Used: Savings = Income − Expenditure
⇒ Initial Savings = 12,800 − 4,000 = ₹8,800
⇒ New Income = 12,800 − (25% of 12,800) = 12,800 − 3,200 = ₹9,600
⇒ New Expenditure = 4,000 − 1,000 = ₹3,000
⇒ New Savings = 9,600 − 3,000 = ₹6,600
⇒ Change in Savings = New Savings − Initial Savings
⇒ Change in Savings = 6,600 − 8,800 = −₹2,200
∴ The correct answer is Decreased by ₹2,200.
Additional Information
Percentage Change Formula
Percentage change = (New Value − Original Value) ÷ Original Value × 100.
Savings and Expenditure Relation
In any income-based problem, Income = Expenditure + Savings. Any change in two variables affects the third proportionally.
Successive Percentage Shortcut
For two successive changes a% and b%, net change = (a + b + ab/100)%. This is useful when both income and expenditure change by percentages.