A spends 60% of his salary and saves the remaining. His salary is increased by 25% and he increased his expenditure by 20%. By what % does his saving increase?
Question
A spends 60% of his salary and saves the remaining. His salary is increased by 25% and he increased his expenditure by 20%. By what % does his saving increase?
Solution
Sure, let's break it down:
Step 1: Let's assume A's initial salary is 100 units. According to the problem, A spends 60% of his salary, which means he spends 60 units and saves 40 units.
Step 2: A's salary is increased by 25%. So, his new salary is 125 units.
Step 3: A increases his expenditure by 20%. His initial expenditure was 60 units, so his new expenditure is 72 units (60 units + 20% of 60 units).
Step 4: Now, let's calculate his new savings. His new salary is 125 units and his new expenditure is 72 units. So, his new savings is 125 units - 72 units = 53 units.
Step 5: Finally, let's calculate the percentage increase in his savings. The initial savings was 40 units and it has increased to 53 units. So, the increase is 13 units. The percentage increase in his savings is (13 units / 40 units) * 100% = 32.5%.
So, A's savings increased by 32.5%.
Similar Questions
A person can save 25% of his income. If his income increases by 20% and still he saves the same amount as before, the percentage increase in his expenditure is?Options26 2/𝟑%25%25 1/𝟑%24%
A man spends 75% of his income. If his income increases by 20% and his expenditure increase by 10%, then find the percentage increase in his savings. Ops: A. 40% B. 20% C. 50% D. 10%
A person spends 60% of his income. If his income increases by 15% and expenditure increases by 5%, then find percentage change on his savings?
The ratio of expenditure and savings of a person is 5 : 3. If the income increases by 20% and the expenditure increases by 10%, then the person’s savings increase by?
Roy saves 20% of his daily pocket money. If his daily pocket money increases by 30%, his savings will increase by 60 cents. Find the amount of his daily pocket money before the increase.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.