Question
A person saves 10% of his salary every month. If his salary increases by 12% and the expenditure increases by 10%, then what will be the change in his saving per month?
- (a)20% increase
- (b)30% increase
- (c)03% decrease
- (d)02% decrease
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Let salary = S, saving = 0.10S, expenditure = 0.90S. New saving = 1.12S − 1.10 × 0.90S = 1.12S − 0.99S = 0.13S. Increase = (0.13 − 0.10)/0.10 = 30%.
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