The monthly salary of a person was Rs. 50,000. He used to spend on Family expenses (E), Taxes (T), Charity (C), and the rest were his savings. E was 60% of the income, T was 20% of E, and C was 15% of T. When his salary got raised by 40%, he maintained the percentage level of E, but T becomes 30% of E and C becomes 20% of T. The difference between the two savings (in Rs.) is:
1. 220
2. 250
3. 130
4. 128
1. 220
2. 250
3. 130
4. 128
Correct Answer – Option 1 : 220
Given:
Monthly salary = Rs. 50,000
E = 60% of income
T = 20% of E
C = 15% of T
After salary got raised by 40%,
E = 60% of income
T = 30% of E
C = 20% of T
Calculations:
Let the initial salary be 1000x.
E = 60% of 1000x
⇒ 600x
T = 20% of 600x
⇒ 120x
C = 15% of 120x
⇒ 18x
Total expense = 600x + 120x + 18x
⇒ 738x
Initial savings = 1000x – 738x
⇒ 262x
After salary got raised by 40%,
New salary = 1000x + 1000x × 40%
⇒ 1400x
New E = 60% of 1400x
⇒ 840x
New T = 30% of 840x
⇒ 252x
New C = 20% of 252x
⇒ 50.4x
New Total expense = 840x + 252x + 50.4x
⇒ 1142.4x
New savings = 1400x – 1142.4x
⇒ 257.6x
Difference in savings = 262x – 257.6x
⇒ 4.4x
∵ 1000x = Rs. 50,000
⇒ x = 50
Difference in savings = 4.4x
⇒ 4.4 × 50
⇒ Rs. 220
∴ The difference between the two savings is Rs. 220.