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In 2018, Madhu saved 26% of her annual income. In 2019, she earned 20% more than she earned last year and saved 25% of her annual income. The amount spent in 2019 is what percent more than in 2018? (Correct to one decimal)

Question

In 2018, Madhu saved 26% of her annual income. In 2019, she earned 20% more than she earned last year and saved 25% of her annual income. The amount spent in 2019 is what percent more than in 2018? (Correct to one decimal)

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Solution

Step 1: Let's assume Madhu's annual income in 2018 was 100.Therefore,shesaved26100. Therefore, she saved 26% of 100, which is 26.Thismeansshespent26. This means she spent 74 in 2018.

Step 2: In 2019, she earned 20% more than what she earned in 2018. So, her income in 2019 was 120(20120 (20% more of 100).

Step 3: She saved 25% of her annual income in 2019, which is 30(2530 (25% of 120). This means she spent $90 in 2019.

Step 4: Now, we need to find out how much more she spent in 2019 compared to 2018. The increase in spending is 9090 - 74 = $16.

Step 5: To find out the percentage increase, we divide the increase by the amount spent in 2018 and multiply by 100. So, the percentage increase in spending is (16/16 / 74) * 100 = 21.6%.

Therefore, the amount spent in 2019 is 21.6% more than in 2018. Rounded to one decimal place, the answer is 21.6%.

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