Discussion Forum

A person saves every year 20% of his income. If his income increases every year by 10%, then his savings increases every year by

Answer:

Explanation:

Originally let the income be Rs.$x$ in a year 

Savings $=20$% of $x$

New income $= x + \left(x \times\frac{10}{100}\right)$

$=110$% $x$ 

New savings $= 20$% (of $110$ % $x$) $=  \frac{(20 \times 110 \times x)}{( 100 \times 100 )}$

$=  \frac{( 22x )}{100}$ $ = 22$%x.

% increase $=  \left(\frac{2}{20}\right)\times 100$ $= 10$%