Question
A man's income was raised by 25%, which led him to
increase his expenditure by 12.5%. As a result, his savings grew from Rs. 4,800 to Rs. 8,400. What is his new income after the increase?Solution
Let the initial income of the man be Rs. '20x' and initial expenditure of the man be Rs. '8y'. New income of the man = 20x X 1.25 = Rs. '25x' New expenditure of the man = 8y X 1.125 = Rs. '9y' ATQ; 20x - 8y = 4800 ......... (I) 25x - 9y = 8400 .......... (II) On subtracting 5 X equation (I) from 4 X equation (II), we have; 100x - 100x - 36y + 40y = 33600 - 24000 Or, 4y = 9600 So, y = 2400 So, 20x - 8 X 2400 = 4800 Or, 20x = 4800 + 19200 Or, 20x = 24000 So, x = 1200 So, new income = 1200 X 25 = Rs. 30,000
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