Question
A person's income increases by 20% and his expenditure
increases by 10%. Earlier, he used to save 25% of his income. If his new saving is Rs. 5400 more than his earlier saving, then what was his original income?Solution
ATQ, Let original income = x Earlier saving = 25% of x = x/4 So, earlier expenditure = 75% of x = 3x/4 New income = 120% of x = 1.2x New expenditure = 110% of old expenditure = 110% of 3x/4 = 1.1 x 3x/4 = 33x/40 New saving = New income - New expenditure = 1.2x - 33x/40 = 48x/40 - 33x/40 = 15x/40 = 3x/8 Increase in saving = New saving - Old saving = 3x/8 - x/4 = 3x/8 - 2x/8 = x/8 Given, x/8 = 5400 x = 5400 x 8 x = 43200 Hence, the original income was Rs. 43200.
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