If the total savings from the income increase of Rs 5000 is Rs 1000, how much is saved?

Understand the Problem

The question is asking how much money is saved from a total savings of Rs 1000 that resulted from an increase in income of Rs 5000. We need to determine the actual amount saved based on this information.

Answer

The percentage of income saved is $20\%$.

Steps to Solve

Identify total income and savings

We know the total amount saved is Rs 1000 and the total increase in income is Rs 5000.

Calculate the savings percentage

To find the percentage of income saved, we divide the total savings by the total income and then multiply by 100 to convert it to a percentage.

$$ \text{savings percentage} = \left(\frac{\text{savings}}{\text{income}}\right) \times 100 $$

Substituting the values:

$$ \text{savings percentage} = \left(\frac{1000}{5000}\right) \times 100 $$

Simplify the equation

Now, we can simplify the savings percentage calculation:

$$ \text{savings percentage} = \left(\frac{1000}{5000}\right) \times 100 = \left(\frac{1}{5}\right) \times 100 $$

Calculate the final value

Now, compute the savings percentage:

$$ \text{savings percentage} = 20% $$

The percentage of income saved is $20%$.

More Information

This means that from the total increase in income of Rs 5000, Rs 1000 was saved, resulting in a savings rate of 20%. This indicates a healthy saving habit as a portion of the income is being set aside.

Tips

Miscalculating the percentage by forgetting to multiply by 100.
Confusing the total savings amount with total income when setting up the calculation.

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