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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?

Explanation

Let the initial salary be SS and the initial savings be 0.1S0.1S. After a 12% increase, the new salary becomes S=S+0.12S=1.12SS' = S + 0.12S = 1.12S. If expenditure increases by 10%, new expenditure becomes E=E+0.1E=1.1EE' = E + 0.1E = 1.1E. Savings after the increase become SES' - E'; assuming E=S0.1S=0.9SE = S - 0.1S = 0.9S, we find the new savings are 1.12S0.99S=0.13S1.12S - 0.99S = 0.13S. The change in savings is 0.13S0.1S=0.03S0.13S - 0.1S = 0.03S, which is a 30% increase from the initial savings of 0.1S0.1S.

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