Kailash used to spend 85% of his income. When his income increased by

1.	Kailash used to spend 85% of his income. When his income increased by 36% his expenses also increased by 40% of his earlier expenses. How much percentage of his earning he saves now?
Answer» Let the income of Kailash be Rs x. Kailash spends 85% of his income. ∴ Kailash’s expenditure = 85% of x = (85/100) × x = 0.85 x Kailash’s income increased by 36%. ∴ Kailash’s new income = x + 36% of x = x + (36/100) × x = x + 0.36x = 1.36x Kailash’s expenses increased by 40%. ∴ Kailash’s new expenditure = 0.85x + 40% of 0.85x = 0.85x + (40/100) × 0.85 × 100 = 0.85x + 0.4 × 0.85x = 0.85x (1 + 0.4) = 0.85x × 1.4 = 1.19x ∴ Kailash’s new saving = Kailash’s new income – Kailash’s new expenditure = 1.36x – 1.19x = 0.17x Percentage of Kailash’s new saving = (0.17x/1.36x) × 100 = 12.5% ∴ Kailash saves 12.5% of his new earning.

Kailash used to spend 85% of his income. When his income increased by 36% his expenses also increased by 40% of his earlier expenses. How much percentage of his earning he saves now?

Answer»

Let the income of Kailash be Rs x.

Kailash spends 85% of his income.

∴ Kailash’s expenditure = 85% of x

= (85/100) × x = 0.85 x

Kailash’s income increased by 36%.

∴ Kailash’s new income = x + 36% of x

= x + (36/100) × x

= x + 0.36x

= 1.36x

Kailash’s expenses increased by 40%.

∴ Kailash’s new expenditure = 0.85x + 40%

of 0.85x

= 0.85x + (40/100) × 0.85 × 100

= 0.85x + 0.4 × 0.85x

= 0.85x (1 + 0.4)

= 0.85x × 1.4

= 1.19x

∴ Kailash’s new saving = Kailash’s new income – Kailash’s new expenditure

= 1.36x – 1.19x

= 0.17x

Percentage of Kailash’s new saving

= (0.17x/1.36x) × 100

= 12.5%

∴ Kailash saves 12.5% of his new earning.

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