Neave saves 20% of his income. When his income was increased by 25%, his savings rose proportionately to $200. What was his original income?
| |
Savings |
Spending |
Total |
| Before |
20% |
80% |
100% |
| Change |
+ 5% |
+ 20% |
+ 25% |
| After |
25% |
100% |
125% |
New income after it was increased by 25%
= 100% + 25%
= 125%
Increase in savings
= 25% x 20%
=
25100 x 20%
= 5%
New savings in percentage
= 20% + 5%
= 25%
25% of the original income = 200
1% of the original income = 200 ÷ 25 = 8
100% of the original income = 100 x 8 = 800
Neave's original income = $800
Answer(s): $800
