Question
A person saves 22% of his monthly income. If his monthly is increased by 35% and he still saves the same amount as before then find percentage increase (approximate) in his monthly expenditure.
Solution
Let monthly of person is Rs. 100x Monthly savings = 0.22 × 100x = Rs. 22x Monthly expenditure = 100x – 22x = Rs. 78x His increased monthly income = 1.35 × 100x = Rs. 135x His monthly expenditure now = 135x – 22x = 113x Percentage increase in expenditure = [(113x – 78x)/78x] × 100 ~ 44.9%
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