Question
A person’s salary rose by 50%. In reaction, he decided to
raise his spending by 30%. If he used to save 20% of his income earlier, what is the percentage growth in his savings now?Solution
ATQ,
Let the original salary be Rs. 100x
Earlier savings = 100x × 0.20 = Rs. 20x
Earlier expenditure = 100x − 20x = Rs. 80x
New expenditure = 80x × 1.30 = Rs. 104x
New salary = 100x × 1.50 = Rs. 150x
New savings = 150x − 104x = Rs. 46x
Required percentage increase in savings = (46x−20x)/20x × 100 = 130%
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