A man spends 80% of his income. His income increased by 25% and his expenditure increased by 10%. By how much did his savings increase?
plz plz answer i am in a true need of it!!!!
To make it easier to see, let's say his income is $1000
so he spends $800 and saves $200
his new income = 1.25(1000) = 1250
his new spending = 1.1(800) = 880
new savings = 1250-880 = 370
increase in savings = 370-200 = 170
increase in savings = 170/200 = .85 or 85%
now he makes 100, spends 80, and saves 20
later, he makes 125 and spends 88, saving 37
so, his savings went up 17/20 = 85%
thank you reiny and steve but in both case i couldn't understand a similar step:
1)In reiny's answer :his new spending = 1.1(800) = 880 from where 1.1 came from?
2)in steve's answer :spends 88 ,from where 88 came from ?
80% increased by 10% is .80*1.1 = .88
To find out how much the man's savings increased, we need to calculate his new savings amount after his income and expenditure increased.
Let's say the man's initial income was X. According to the given information, he spent 80% of his income, which is equivalent to 0.8X. Therefore, his original savings were X - 0.8X = 0.2X.
After his income increased by 25%, his new income is 1.25X (X + 25% of X = 1.25X).
Similarly, after his expenditure increased by 10%, his new expenditure is 1.1 * 0.8X = 0.88X (10% of 0.8X = 0.08X, so the new expenditure is 0.8X + 0.08X = 0.88X).
Now, let's calculate the man's new savings:
New savings = New income - New expenditure
= 1.25X - 0.88X
= 0.37X
To find the increase in savings, we subtract the original savings from the new savings:
Increase in savings = New savings - Original savings
= 0.37X - 0.2X
= 0.17X
Therefore, the man's savings increased by 0.17 times his initial income (X).