Question
Sanjay saves 40% of his monthly income. If his monthly
income increases by 12% while his monthly savings remain the same, find the increase in his monthly expenditure.Solution
ATQ,
Let the monthly income of Sanjay be Rs. 100x.
So, monthly savings of Sanjay = 0.40 × 100x = Rs. 40x
Monthly expenditure of Sanjay = 100x – 40x = Rs. 60x
Monthly income of Sanjay after increase = 1.12 × 100x = Rs. 112x
Monthly expenditure of Sanjay after increase = 112x – 40x = 72x
Desired percentage = [(72x – 60x)/60x] × 100 = 20%
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