Question
A man spends 80% of his monthly income. When his income
increases by 25% and his expenditure increases by 20%, his monthly savings increase by ₹900. What is his original monthly income?Solution
Let original income = ₹I Original expenditure = 80% of I = 0.8I Original savings = I − 0.8I = 0.2I New income = 1.25I New expenditure = 1.20 × 0.8I = 0.96I New savings = 1.25I − 0.96I = 0.29I Increase in savings = 0.29I − 0.20I = 0.09I Given: 0.09I = 900 I = 900 ÷ 0.09 = 10,000 Original income = ₹10,000.
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