The ratio of expenditure to savings of a woman is 5:1. If her income and expenditure are increased by 10% and 20%, respectively, then find the percentage change in her savings. |
55% 60% 50% 40% |
40% |
Let the initial expenditure be 5R The final expenditure = 5R x \(\frac{120}{100}\) = 6R (increase of x% = \(\frac{100+x}{100}\)) Initial income = 5R + 1R = 6R Changed income = 6R x \(\frac{110}{100}\) = \(\frac{33}{5}\)R Changed savings = Final income - Final expenditure = \(\frac{33}{5}\)R - 6R = \(\frac{3}{5}\)R % change in savings = \(\frac{change\; in\; savings}{initial\; savings}\) = \(\frac{R - \frac{3R}{5} }{R}\) x 100 = 40% |