Courses
Courses for Kids
Free study material
Offline Centres
More
Store Icon
Store
seo-qna
SearchIcon
banner

A man spends 75% of his income. This income is increased by 20% and he increases his expenditure by 10%. By what percent are his savings increased?

Answer
VerifiedVerified
480.3k+ views
like imagedislike image
Hint: Here in this question we need to simply assume the man’s income to be any number or the variable and then apply the above conditions and get the original and new values of the expenditure and his savings. For example: If we assume the man’s income as Rs100 then according to the given income we can calculate his original expenditure. Similarly if we increase the income by 20% his new income becomes Rs120 and again find the same expenditure and the saving.
Now we can solve the percent increase in savings by the formulapercent increase in savings=new savingold savingold saving×100%

Complete step-by-step answer:
Here we are given that man spends 75% of his income. This income is increased by 20% and he increases his expenditure by10%.
Here we need to find the percentage increase in the savings. So first of all we need to assume the income as any amount or any variable and with respect to that we can calculate the percentage increase in the savings of a man.
So let the income of the man=Rs100
He spends 75% of his income which means he saves rest of the income which is (10075)=25% of his total income.
His expenditure=75% of 100=Rs 75
So his savings=25% of Rs100=25100(100)=Rs 25
So his original savings is Rs 25
Now we know that his income is increased by 20%
So the new income
=100+20% of 100=100+20100(100)=100+20=Rs120
Now his expenditure is increased by 10%
So his new expenditure=original expenditure+10\% of original expenditure
So we get new expenditure=75+10100(75)=75+7.5=82.5
New saving
=new incomenew expenditure=12082.5=37.5
So percent increase=new savingoriginal savingoriginal saving(100)%
37.52525×100%=12.525×100%=50%
Hence his increase in saving is 50%

Note: Here in this type of the problem student can make a mistake in getting the statement properly. So students must analyse the question properly and for the new saving we need to subtract the new expenditure from the new income of the person not from the assumed income. So here the student must be aware of the situation.
WhatsApp Banner