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Shashi saves 12% of her income. If her income is increased by 25% and she now saves 15% of her income, then by what percentage will her actual savings increase?

Shashi saves 12% of her income. If her income is increased by 25% and she now saves 15% of her income, then by what percentage will her actual savings increase? Correct Answer 56.25

Let the income of Shashi be 100x.

Savings of Shashi = 100x × 12/100 = 12x

New income of Shashi = 100x × 125/100 = 125x

New savings of Shashi = 125x × 15/100 = 18.75x

Her savings increased by = 18.75x – 12x = 6.75x

Her percentage of savings increased by = (6.75x/12x) × 100 = 56.25%

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