Question
In 2018, Pritam used up 72% of his income for expenses.
In the following year, his income rose by 20%, while his expenditure increased by 25%. What was the percentage change in his savings from the previous year?Solution
Let the income of Pritam in 2018 be Rs. '100b'. Expenditure of Pritam in 2018 = 0.72 X 100b = Rs. 72b Savings of Pritam in 2018 = 100b - 72b = Rs. 28b Increased income of Pritam in 2019 = 1.2 X 100b = Rs. 120b Increased expenditure of Pritam in 2019 = 1.25 X 72b = Rs. 90b So, savings of Pritam in 2019 = 120b - 90b = Rs. 30b Therefore, percentage increase in savings = [(30b - 28b) ÷ 30b] X 100 = 6(2/3)%
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