Amina saves 16% of her income. Now her income is increased by 20% but she still saves the same amount as before. What is the percentage increase in her expenditure?
Question
Amina saves 16% of her income. Now her income is increased by 20% but she still saves the same amount as before. What is the percentage increase in her expenditure?
Solution
Sure, let's break it down:
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Let's assume Amina's initial income was 100 makes the percentages easy to calculate). So, she was saving 16% of 16.
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Now, her income is increased by 20%. So, her new income is 100 + 20% of $100).
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Even though her income has increased, she still saves the same amount as before, which is $16.
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Her initial expenditure was the difference between her income and her savings. So, it was 16 = $84.
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Her new expenditure is the difference between her new income and her savings. So, it's 16 = $104.
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The increase in her expenditure is the difference between her new expenditure and her initial expenditure. So, it's 84 = $20.
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To find the percentage increase in her expenditure, we divide the increase by the initial amount and then multiply by 100. So, it's (84) * 100 = approximately 23.81%.
So, the percentage increase in Amina's expenditure is approximately 23.81%.
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