Question
An individual's monthly income was Rs. 27500 and his
monthly expenses were Rs. 20000. In the following year, the income rose by 9% and expenses increased by 6%. What is the percentage rise in his savings?Solution
ATQ,
Initial savings = 27500 – 20000 = Rs. 7500
New income = 1.09 Ă— 27500 = Rs. 29975
New expenses = 1.06 Ă— 20000 = Rs. 21200
New savings = 29975 – 21200 = Rs. 8775
Percentage increase = [(8775 – 7500)/7500] × 100 = 17%
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