Shortcut Trick
Ratio of Income : Expenditure : Savings = 100 : 50 : 50 = 2 : 1 : 1.
New Income = 2 × 140% = 2.8 units.
New Expenditure = 1 × 130% = 1.3 units.
New Savings = 2.8 − 1.3 = 1.5 units.
1.5 units = Rs. 7500 ⇒ 1 unit = Rs. 5000.
Initial Income = 2 units = 2 × 5000 = Rs. 10000.
∴ The correct answer is Rs. 10000.
Alternate Method
Given: Expenditure = 50% of Income, Income Increase = 40%, Expenditure Increase = 30%, Final Saving = Rs. 7500.
Formula Used: Income = Expenditure + Savings
⇒ Let Initial Income = 100 units.
⇒ Initial Expenditure = 50% of 100 = 50 units.
⇒ Initial Savings = 100 − 50 = 50 units.
⇒ New Income = 100 + 40% = 140 units.
⇒ New Expenditure = 50 + 30% of 50 = 50 + 15 = 65 units.
⇒ New Savings = 140 − 65 = 75 units.
⇒ Given New Savings = Rs. 7500.
⇒ 75 units = Rs. 7500 ⇒ 1 unit = Rs. 100.
⇒ Initial Income = 100 units = 100 × 100 = Rs. 10000.
∴ The correct answer is Rs. 10000.
Additional Information
Income-Expenditure Relationship
Total Income is always the sum of Expenditure and Savings (I = E + S). Any change in one affects the balance of the others.
Percentage Increase Calculation
New Value = Old Value × (1 + Rate/100). For example, a 40% increase means multiplying by 1.40.
Unitary Method in Savings
When values are given in percentages, assuming a base of 100 units for the original quantity simplifies the comparison with actual monetary values.