Let the initial salary of the person be 100.
Given that the person saves 10% of his salary:
- Initial saving = 10% of 100=10
- Initial expenditure = Initial salary - Initial saving = 100−10=90
Now, the salary increases by 12% and the expenditure increases by 10%:
- New salary = 100+12% of 100=100+12=112
- New expenditure = 90+10% of 90=90+9=99
The new saving will be the difference between the new salary and the new expenditure:
- New saving = New salary - New expenditure = 112−99=13
Now, we calculate the change in his saving:
- Increase in saving = New saving - Initial saving = 13−10=3
- Percentage increase in saving = (Initial savingIncrease in saving)×100%
- Percentage increase = (103)×100%=30%
Therefore, there is a 30% increase in his saving per month.