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QUESTION

CSAT

Medium

Maths

Prelims 2026

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?

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Explanation

Let the initial salary of the person be 100100.

Given that the person saves 10%10\% of his salary:

  • Initial saving = 10%10\% of 100=10100 = 10
  • Initial expenditure = Initial salary - Initial saving = 10010=90100 - 10 = 90

Now, the salary increases by 12%12\% and the expenditure increases by 10%10\%:

  • New salary = 100+12%100 + 12\% of 100=100+12=112100 = 100 + 12 = 112
  • New expenditure = 90+10%90 + 10\% of 90=90+9=9990 = 90 + 9 = 99

The new saving will be the difference between the new salary and the new expenditure:

  • New saving = New salary - New expenditure = 11299=13112 - 99 = 13

Now, we calculate the change in his saving:

  • Increase in saving = New saving - Initial saving = 1310=313 - 10 = 3
  • Percentage increase in saving = (Increase in savingInitial saving)×100%\left( \frac{\text{Increase in saving}}{\text{Initial saving}} \right) \times 100\%
  • Percentage increase = (310)×100%=30%\left( \frac{3}{10} \right) \times 100\% = 30\%

Therefore, there is a 30%30\% increase in his saving per month.

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