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Question : The monthly income of a person is INR 15,000. He saves 20% of his income. If his income increases by 10% and his nominal savings remain the same, then what will be his new expenditure?

Option 1: INR 13,000

Option 2: INR 14,500

Option 3: INR 13,500

Option 4: INR 14,000


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 15th Jan, 2024

Correct Answer: INR 13,500


Solution : The monthly income of a person = INR 15000
Savings = $\frac{20}{100}\times15000=3000$
Expenditure = Income – saving = 15000 – 3000 = 12000
When income increases by 10% = $\frac{110}{100}\times15000=16500$
Savings remain the same, so new expenditure = 16500 – 3000 = 13500
Hence, the correct answer is INR 13500.

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