Question
Priya spends 80% of her monthly
income. If her monthly income increases by 25% and her monthly expenditure also increases by 15%, find the percentage increase in her savings.Solution
ATQ,
Let the initial monthly income be ‘Rs. x’. Initial monthly expenditure = ‘Rs. 0.8x’ So, initial savings = ‘Rs. 0.2x’ Increased monthly income = 1.25 × x = ‘Rs. 1.25x’ Increased monthly expenditure = 1.15 × 0.8x = ‘Rs. 0.92x’ So, increased savings = (1.25x – 0.92x) = ‘Rs. 0.33x’ Required percentage = {(0.33x – 0.2x)/0.2x} × 100 = {(0.13x × 100)/0.2x} = 65%
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