Question
Arjun sets aside 20% of his monthly earnings. If his
monthly expenses rise by 45% while his monthly savings remain constant, determine the % increase in his monthly income.Solution
ATQ, Let monthly income of Arjun initially be Rs.100a Monthly savings of Arjun initially = 0.20 × 100a = Rs.20a Monthly expenditure of Arjun initially = 100a – 20a = Rs.80a Increased monthly expenditure = 1.45 × 80a = Rs.116a So, Increased monthly income = 116a + 20a = Rs.136a Desired percentage = [(136a – 100a)/100a] × 100 = 36%
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