Each of the two friends A and B earns Rs. 5000 and they spend 80% of their income and rest they save. If the salary of A is increased by 25% and the salary of B is decreased by 30% and A increased his expenditure by 20% and B decreased his expenditure by 30%. By how much percent increase in saving of A is more than the decrease in saving of B?

Each of the two friends A and B earns Rs. 5000 and they spend 80% of their income and rest they save. If the salary of A is increased by 25% and the salary of B is decreased by 30% and A increased his expenditure by 20% and B decreased his expenditure by 30%. By how much percent increase in saving of A is more than the decrease in saving of B? Correct Answer 50%

Formula used:

Income = Expenditure + Savings

Calculation:

Let the salary of A and B be 100x and 100y units respectively

According to the question,

Expenditure of A and B respectively are 80x and 80y units

Savings of A and B respectively are 20x and 20y

Now,

Salary of A is increased by 25% and the salary of B is decreased by 30%

New salary of A = 100x + 25% of 100x = 125x

New expenditure of A = 80x + 20% of 80x = 80x + 16x = 96x

New saving of A = 125x – 96x = 29x

Increase in saving of A = 29x – 20x = 9x

100x = 5000

x = 50

9x = 450

New salary of B = 100y – 30% of 100y = 70y

New Expenditure of B = 80y – 30% of 80y = 56y

New saving of B = 70y – 56y = 14y

Decrease in saving of B = 20y – 14y = 6y

100y = 5000

y = 50

6y = 300

Required percentage = (450 – 300)/300 × 100 = 50%

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