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%