Question
The monthly income of a person was ₹27,000 and his
monthly expenditure was ₹18,000. In the next year, his income increased by 28% and his expenditure increased by 14%. Find the percentage increase in his savings.Solution
Savings = Income - Expenditure Initial savings = 27,000 - 18,000 = 9,000 New income = 27,000 + 28% of 27,000 = 27,000 × 1.28 = 34,560 New expenditure = 18,000 + 14% of ₹18,000 = 18,000 × 1.14 = 20,520 New savings = 34,560 -20,520 = 14,040 Increase in savings = New savings - Initial savings = 14,040 - 9,000 =5,040 Percentage increase = (Increase in savings / Initial savings) x 100 = (5,040 / 9,000) x 100 = 56%
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