Question
Calculate the % change in Anuradha's monthly expenditure
when her income experiences a 32% increase, while her monthly savings, which normally accounts for 60% of her income, remains constant.Solution
ATQ, Let monthly income of Anuradha is Rs. 100a. Monthly savings of Anuradha = 0.60 × 100a = Rs. 60a Monthly expenditure of Anuradha = 100a – 60a = Rs. 40a Increased monthly income of Anuradha = 1.32 × 100a = Rs.132a Monthly expenditure now = 132a – 60a = Rs. 72a Percentage increase in monthly expenditure = [(72a – 40a)/40a] × 100 = 80%
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