Question
Rohit used to earn Rs. 42,000 per month. His spending to
saving ratio was 5:9. After a salary increment, he reduced his expenses by 20% and his savings increased by 20%. What was the hike in his salary?Solution
ATQ,
Initially, expenditure of Rohit = 42000 × (5/14) = Rs. 15,000
Initially, savings of Rohit = 42000 × (9/14) = Rs. 27,000
After salary hike, expenditure = 15000 × (80/100) = Rs. 12,000
After salary hike, savings = 27000 × (120/100) = Rs. 32,400
So, increased salary = 12000 + 32400 = Rs. 44,400
Required salary hike = 44400 – 42000 = Rs. 2,400
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