In June, Mr Tan saved 20% of his salary. In July, his monthly salary increased by $600 and he saved 15% of his new monthly salary. Given that Mr Tan saved the same amount of money in both months, find the percentage increase in Mr Tan's salary. Answer : ___

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Worked solution

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1. Form an equation based on the equal savings in both months

Let Mr Tan's salary in June be xx.
Savings in June = 20%20\% of x=0.2xx = 0.2x
Salary in July = x+600x + 600
Savings in July = 15%15\% of (x+600)=0.15(x+600)(x + 600) = 0.15(x + 600)
Since the savings are the same:
0.2x=0.15(x+600)0.2x = 0.15(x + 600)

2. Solve the equation to find the June salary

0.2x=0.15x+900.2x = 0.15x + 90
0.2x−0.15x=900.2x - 0.15x = 90
0.05x=900.05x = 90
x=900.05=1800x = \frac{90}{0.05} = 1800
Mr Tan's salary in June was $1800\char36{}1800.

3. Calculate the percentage increase in his salary

Increase in salary = $600\char36{}600
Percentage increase = IncreaseOriginal Salary×100%\frac{\text{Increase}}{\text{Original Salary}} \times 100\%
=6001800×100%= \frac{600}{1800} \times 100\%
=13×100%=3313%= \frac{1}{3} \times 100\% = 33\frac{1}{3}\%

Answer

3313%33\frac{1}{3}\%

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