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)
Solution
Step 1: Let's assume Madhu's annual income in 2018 was 100, which is 74 in 2018.
Step 2: In 2019, she earned 20% more than what she earned in 2018. So, her income in 2019 was 100).
Step 3: She saved 25% of her annual income in 2019, which is 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 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 (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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