Raj always saves 50% of his salary. If his salary decreases by 10% , his savings will decrease by $300. How much is Raj's original salary?
Question
Raj always saves 50% of his salary. If his salary decreases by 10% , his savings will decrease by $300. How much is Raj's original salary?
Solution 1
Step 1: Let's denote Raj's original salary as X. Since Raj saves 50% of his salary, his savings are 0.5X.
Step 2: If his salary decreases by 10%, his new salary becomes 0.9X. Since his savings decrease by 300.
Step 3: However, since he still saves 50% of his new salary, his new savings are also 0.5 * 0.9X = 0.45X.
Step 4: Now we can set up the equation 0.5X - $300 = 0.45X.
Step 5: If we simplify this equation, we get 0.05X = $300.
Step 6: Solving for X, we find that X = 6000.
So, Raj's original salary is $6000.
Solution 2
To solve this problem, we need to set up a few equations based on the information given.
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We know that Raj saves 50% of his salary. We can represent his salary as S and his savings as 0.5S.
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We're told that if his salary decreases by 10%, his savings decrease by $300. We can represent this new salary as 0.9S and his new savings as 0.5S - 300.
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Since his savings are 50% of his salary, we can set up the equation 0.5(0.9S) = 0.5S - 300.
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Solving this equation for S will give us Raj's original salary.
Let's solve it:
0.45S = 0.5S - 300 Subtract 0.45S from both sides: 0.05S = 300 Divide both sides by 0.05: S = 300 / 0.05 S = $6000
So, Raj's original salary is $6000.
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