Rama’s expenditures and savings are in the ratio 5 : 3.

Rama’s expenditures and savings are in the ratio 5 : 3. If her in- come increases by 12% and expenditure by 15%, then by how much per cent do her savings increase ?

Let Rama’s expenditure = 5k
Savings = 3k
∴ Rama’s income = 5k + 3k = 8k
After increase,

Rama’s income =	112	× 8k = 8.96 k
	100

Rama’s expenditure =	5k × 115	= 5.75k
	100

Rama’s savings = (8.96k – 5.75k) = 3.21k

∴ Rama’s saving percent =			3.21k - 3k		× 100
			3k

Rama’s saving percent =	0.21	× 100 = 7%
	3