Question
Arjun used to save 40% of his
income every month. After a 60% increase in his monthly income, his savings stayed constant. Determine the change in his monthly expenditure, whether it increased or decreased, and by how much.Solution
ATQ,
Let monthly income of ‘Arjun’ is Rs. 100x Monthly savings of ‘Arjun’ = 0.40 × 100x = Rs. 40x Monthly expenditure of ‘Arjun’ = 100x – 40x = Rs. 60x Increased monthly income = 1.60 × 100x = Rs. 160x Monthly expenditure now = 160x – 40x = Rs. 120x Percentage % = [(120x – 60x)/60x] × 100 = 100%
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