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Ethan always saves 60% of his salary. If his salary decreases by 15% , his savings will decrease by $270. How much is Ethan's original salary?

Question

Ethan's Savings Problem

Ethan always saves 60% of his salary. If his salary decreases by 15%, his savings will decrease by $270.

How much is Ethan's original salary?

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Solution

Step 1: Let's denote Ethan's original salary as X.

Step 2: We know that Ethan saves 60% of his salary, so his savings are 0.60X.

Step 3: If his salary decreases by 15%, his new salary becomes 0.85X.

Step 4: His savings would also decrease proportionally, so his new savings would be 0.60 * 0.85X = 0.51X.

Step 5: We know that the decrease in his savings is 270.So,0.60X0.51X=270. So, 0.60X - 0.51X = 270.

Step 6: Simplifying the equation gives 0.09X = $270.

Step 7: Solving for X, we get X = 270/0.09=270 / 0.09 = 3000.

So, Ethan's original salary is $3000.

This problem has been solved

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