Question
The ratio of income and expenditure of a man is 6 : 5,
respectively. If the income and expenditure of the man are increased by 25% and 10% respectively, then find the percentage increase in the savings of the man.Solution
Let the income of the man be Rs. ‘6x’ So, expenditure = Rs. ‘5x’ So, savings = 6x – 5x = Rs. ‘x’ New income = 6x × 1.25 = Rs. ‘7.5x’ New expenditure = 5x × 1.1 = Rs. ‘5.5x’ New savings = 7.5x – 5.5x = Rs. ‘2x’ So, required percentage increase
= {(2x – x) / x} × 100
= 100%
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