Question
The ratio of income and expenditure of a person is 8 :
5, respectively. If the income and expenditure of the person are increased by 25% and 20% respectively, then find the percentage increase in savings.Solution
Let the income of the person be Rs. ‘8x’ So, expenditure = Rs. ‘5x’ So, savings = 8x – 5x = Rs. ‘3x’ New income = 8x × 1.25 = Rs. ‘10x’ New expenditure = 5x × 1.2 = Rs. ‘6x’ New savings = 10x – 6x = Rs. ‘4x’ So, required percentage increase
= {(4x – 3x) / 3x} × 100
= 33.33%
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