Hanuman's Income In 2015 was Rs. 100,000 per month. He spends Rs. 8 out of every Rs. 9 that he earns. Ram Co, his employer, provides an inflation based Increment every year. Inflation rates in 2016 and 2017 have been 10%. Hanuman's annual expenditure however goes up by 1 percentage point each year in these two years. By what percentage have his savings changed in 2017?
Answers
Given : Hanuman's Income In 2015 was Rs. 100,000 per month. He spends Rs. 8 out of every Rs. 9 that he earns. Ram Co, his employer, provides an inflation based Increment every year. Inflation rates in 2016 and 2017 have been 10%. Hanuman's annual expenditure however goes up by 1 percentage point each year in these two years.
To Find : By what percentage have his savings changed in 2017?
Solution:
Income in 2015 = Rs 100,000 per month
Spend Rs 8 of every 9
Hence spent in 2015 = (8/9)100,000 = 800,000/9
Saving = 100,000/9
Income in 2016 = (100,000) ( 1.1) = 110,000 Rs
Income in 2017 = (110,000) ( 1.1) = 121,000 Rs
spent in 2016 = (800,000/9)(1.01) = 808,000/9
Saving in 2016 = 110,000 - (808,000/9)
spent in 2017= (808,000/9)(1.01) = 816,080/9
Saving in 2017 = 121,000 - (816,080/9)
% change in saving in 2017 from 2015
100 * (121,000 - (816,080/9) - 100,000/9) /100,000/9
= 172.92 %
% change in saving in 2017 from 2016
100 * (121,000 - (816,080/9) - ( 110,000 - (808,000/9) )) /( 110,000 - (808,000/9) )
= 49.96 %
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