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Data Interpretation · Question 73 of 75

The Nagpur family's rent goes up by 20% while its income stays at ₹48,000, and the whole increase is taken…

Question 73

HardOriginal question

The Nagpur family's rent goes up by 20% while its income stays at ₹48,000, and the whole increase is taken out of savings. Using the chart, what percentage of income does the family now save?

Pie chart titled How a family divides its monthly income. Rent 25%; Food 30%; Education 15%; Transport 10%; Savings 20%.
Options for question 73

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. Rent is 25% of income. A 20% rise in rent: 20% of 25%=5%20\% \text{ of } 25\% = 5\% of income.

  2. Rent becomes 30% of income, and savings fall by the same 5 percentage points.

  3. Savings: 20%−5%=15%20\% - 5\% = 15\% of income.

Worth noting

A rise of 20% in one slice is not a rise of 20 percentage points of the whole pie. 0% subtracts 20 percentage points, but the rent rose by 20% of the rent, which is only 5% of income. 16% cuts savings by 20% of the savings instead of taking out the extra rent. 5% is the amount moved from savings to rent, not what is left in savings.

Concept
Percentage change of a slice versus percentage points of the whole
Typical time
120 s
Your time
—
The rule this testsPie charts
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