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Question

Susan saves 20% of her salary each month. She found that if her salary were to increase by 10%, her savings would increase by $20. Find Susan’s salary.

Answer

10% increase in salary also means 10% increase in saving if she maintains the same 20% saving of salary

$20 is also a 10% increase in her saving,

So her original saving is $20/0.1 = $200

And $200 is 20% of her salary,

So her salary is $200/0.2 = $1000 ###

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