Question

A person saves 6% of his income. two years later, his income shoots up by 15% but his savings remain the same. find the hike in his expenditure.

Answer 1

$\textbf{Answer}$

Suppose the income of a person is $\textbf{100 Rs}$.

Since person saves 6% of income,
=> Saving = 6% of 100 = 6 Rs

$\textbf{Expenditure = Income - Saving}$
=> Expenditure = 100 - 6 = 94 Rs

$\textbf{After 2 years,}$
$\textbf{Income shoots up by 15}$%

=> Income = 100 + 15% of 100
=> Income = 115 Rs

But saving remains same,
=> Expediture = 115 - 6 = Rs 109

=> Hike in expenditure = 109 - 94

$\textbf{Hike in expenditure = 15 Rs}$

Previous expenditure = 94 Rs

=> Hike% = (15/94) × 100

=> $\textbf{Pecentage hike = 15.957}$% $\textbf{in expenditure}$

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Answer 2

Suppose the income of a person is \textbf{100 Rs}100 Rs .

Since person saves 6% of income,
=> Saving = 6% of 100 = 6 Rs

\textbf{Expenditure = Income - Saving}Expenditure = Income - Saving 
=> Expenditure = 100 - 6 = 94 Rs

\textbf{After 2 years,}After 2 years, 
\textbf{Income shoots up by 15}Income shoots up by 15 %

=> Income = 100 + 15% of 100
=> Income = 115 Rs

But saving remains same,
=> Expediture = 115 - 6 = Rs 109

=> Hike in expenditure = 109 - 94

\textbf{Hike in expenditure = 15 Rs}Hike in expenditure = 15 Rs 

Previous expenditure = 94 Rs

=> Hike% = (15/94) × 100

=> \textbf{Pecentage hike = 15.957}Pecentage hike = 15.957 % \textbf{in expenditure}in expenditure