Question
In 2021, Rahul uses 78% of his monthly earnings. In 2022,
his income increased by 28%, and he raised his expenditure by 18%. Calculate the percentage growth in his savings.Solution
ATQ,
Let the income of Rahul in 2021 be Rs. 100f
Expenditure of Rahul in 2021 = 0.78 × 100f = Rs. 78f
Savings of Rahul in 2021 = 100f - 78f = Rs. 22f
Income of Rahul in 2022 = 1.28 × 100f = Rs. 128f
Expenditure of Rahul in 2022 = 1.18 × 78f = Rs. 92.04f
Savings of Rahul in 2022 = 128f - 92.04f = Rs. 35.96f
Therefore, percentage increase in savings = [(35.96f - 22f) ÷ 22f] × 100 = 63.45%
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