Question

A person working in a private company saves 30% of his income, his income increases by 50% but his savings remain the same. find out the hike in his expenditure

Answer 1

x-30x/100
(x+50x/100)-30x/100
x+50x/100-30x/100-x+30x/100
50%

Answer 2

The hike in expenditure is 71%.

GIVEN

A person working in a private company saves 30% of his income, his income increases by 50% but his savings remain the same.

TO FIND

The hike in his expenditure

SOLUTION

We can simply solve the above problem as follows;

We know that,

Income = Expenditure + savings.

Let the income of the man be 100

Given,

30% of income is saved.

Amount of money saved = 30% of 100 = 30

Amount spent on expenditure = 70% of income = 70

Percentage increase in Income = 50%

New income = 100 + 50% of 100 = 100+50 = 150

It is given that the savings has not changed.

New expenditure = New income - savings.

= 150 - 30

= 120

Hike in the expenditure = 120 - 70 = 50

Percentage hike = (50/70) × 100 = 71%

Hence, The hike in expenditure is 71%.

#Spj2