Question
Monthly savings of ‘A’ is Rs. 1100 more than his
monthly expenditure and his total monthly income is Rs. 6500. If his monthly income is increased by 40% and his monthly savings is increased by 37.5%, then find the increase in his monthly expenditureSolution
Monthly savings of ‘A’ = (6500 + 1100)/2 = Rs. 3800 Monthly expenditure of ‘A’ = 6500 – 3800 = Rs. 2700 Increased monthly expenditure of ‘A’ = 1.40 × 6500 – 1.375 × 3800 = Rs. 3875 Desired increase = 3875 – 2700 = Rs. 1175
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