Question
The ratio between Riya's income and expenditure is 5:3. If both income and expenditure rise by 60% and 40% respectively, find the percentage increase in her savings.
Solution
ATQ,
Let the initial income and expenditure of Riya be Rs. '5n' and Rs. '3n', respectively.
Initial savings = 5n - 3n = Rs. '2n'
Increased income = (8/5) × 5n = Rs. '8n'
Increased expenditure = (7/5) × 3n = Rs. '21n/5'
Final savings = 8n - 21n/5 = Rs. (40n - 21n)/5 = 19n/5
Required percentage = [(19n/5 - 2n) ÷ 2n] × 100
= [(19n - 10n) ÷ 10n] × 100
= (9n ÷ 10n) × 100 = 90%
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