Question

Mohan's income is Rs. 15500 per month. He saves 11% of his income. If his income increases by 10% then he reduces his saving by 1%, how much does he save now?

Answer 1

Mohan's income =Rs.15500

Savings at the rate of 11% =Rs. $\frac{15500\times 11}{100}$

=Rs.1705

Increase in income =10%

$\therefore$ Increased incomes =Rs. $15500\times \frac{(100+10)}{100}$

=Rs. $\frac{15500\times 110}{100}$

=Rs.17050

Rate of new savings =11% -1% =10%

$\therefore$ New savings =Rs. $\frac{17050\times 10}{100}=Rs.1705$

We see that the savings is same

$\therefore$ There is no change in savings.