Question
Originally, Karan’s monthly income was Rs. 25,000, and he
used to spend and save in the ratio of 1:4. After a revision, he cut his expenses by 50% and boosted savings by 25%. Find the amount of hike in his income.Solution
ATQ,
Initially, expenditure of Karan = 25000 × (1/5) = Rs. 5,000
Initially, savings of Karan = 25000 × (4/5) = Rs. 20,000
After salary hike, expenditure = 5000 × (50/100) = Rs. 2,500
After salary hike, savings = 20000 × (125/100) = Rs. 25,000
So, increased salary = 2500 + 25000 = Rs. 27,500
Required salary hike = 27500 – 25000 = Rs. 2,500
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