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A man saves 15% of his salary every month. 40% of his expenditure includes the household items, 60% of which constitutes the food items. When his salary incremented by 15%, he spent Rs. 8211 on the food items, which was 25% more than his initial expenditure on the food items. What is his new salary?

A man saves 15% of his salary every month. 40% of his expenditure includes the household items, 60% of which constitutes the food items. When his salary incremented by 15%, he spent Rs. 8211 on the food items, which was 25% more than his initial expenditure on the food items. What is his new salary? Correct Answer Rs. 37030

Let the initial salary of the man be Rs. ‘x’

Total expenditure = Salary – Savings = x – 15% of x = 85% of x = 0.85x

Expenditure on household items = 40% of (Total expenditure) = 0.4 × 0.85x = 0.34x

Expenditure on food items = 60% of (Expenditure on household items) = 0.6 × 0.34x = 0.204x

When he got an increment, he spent Rs. 8211 on food items, which is 25% more than initial expenditure,

⇒ 1.25 × 0.204x = 8211

⇒ x = 8211/0.255 = Rs. 32200

∵ He received an increment of 15%,

∴ His new salary = (100 + 15)% of 32200 = 1.15 × 32200 = Rs. 37030

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