Question

Rohan's expenditure and saving are in the ratio of 5:1, if his salary increased by 25% and his saving increased by 15% then by what percent his expenditure will increase ?

Answer 1

Let the salary of Rohan is Rs 100

Given the expenditure and saving ratio of 5:1

Then expenditure =$\frac{5}{6}\times 100=\frac{500}{6}$ Rs

And savings =$\frac{1}{6}\times 100=\frac{100}{6}$ Rs

If his salary increased by 25% then new salary =100+25=125 Rs

Given that after salary increased the savings increased 15 %

Then new saving =$\frac{100}{6}\times \frac{115}{100}=\frac{115}{6}$ Rs

So the expenditure after salary increased=$125-\frac{115}{6}=\frac{750-115}{6}=\frac{635}{6}$ Rs

Then increase expenditure after salary increased=$\frac{635}{6}-\frac{500}{6}=\frac{135}{6}$ Rs

Then % increase expenditure after salary increased=$\frac{135}{6}\times \frac{6}{500}\times 100=27$ %