Question
A person saves 20% of his monthly earnings. If his
monthly earnings increase by 70%, then by how much percent should he increase his monthly expenditure so as to save the same amount that he saved before?Solution
ATQ; Let the initial earnings of the person be Rs. ‘100x’ Initial savings of the person = 100x × 0.2 = Rs. ‘20x’ Initial expenditure of the person = 100x – 20x = Rs. ‘80x’ New earnings of the person = 100x × 1.7 = Rs. ‘170x’ New savings of the person = 170x – 20x = Rs. ‘150x’ Required percentage = {(150x – 80x)/80x} × 100 = 87.5%
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