Question

. Raman spends 80% of his income. If his in-
come is increased by 25% and expenditure
increase by 10%, then what will be the percentage increase in his savings.
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Answer 1

Answer:

Solution:

Let the income of Raman be Rs. 100

According to the problem statement

Amount to be spend by Raman can be given as

Amount spent = 100 × (80/100) = Rs. 80

Now the savings is 100 – 80 = Rs. 20

If income increased by 25%, new income will be

New income = 100 × (1 + 25/100) = Rs. 125

Expenditure increased by 10% can be given as

⇒ final expenditure = 80 × (1 + 10/100) = 80 × 1.1 = Rs. 88

Savings can be given as 125 – 88 = 37

Increase in saving is 37 – 20 = Rs. 17

⇒ percentage increase in savings can be given as = 17 × 100/20 = 85%

∴ The increase in savings is 85%

Answer 2

Answer:

85 %

Step-by-step explanation:

Let the income of Raman be Rs. 100

Raman expenditure = 80% of 100 =

Saving of Raman = 100-80 = 20

New income of Raman = 100 + 25%100 = 125%of100 =

New expenditure of Raman =

New saving of Raman = 125-88 = 37

Percentage increase in saving = 37 -20/20 × 100 = 85 %

So, the percentage of his savings is 85%

hope it helps......