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The income of a person is 10000 and its expenditure is 6000 and thus saves 4000rs. In the next year his income is increased by 10% and its expenditure increased by 20%. Now his saving is what percent lower than the previous saving.
  • a)
    5%
  • b)
    7.5%
  • c)
    10%
  • d)
    15%
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
The income of a person is 10000 and its expenditure is 6000 and thus s...
Answer – a) 5% Solution: Initially I-E = S (I = Income, E = expenditure, S = saving) 10000-6000 = 4000(saving) Now, I = 11000 and E = 7200. So saving = I – E = 3800. [(4000-3800)/4000]*100 = 5%
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Most Upvoted Answer
The income of a person is 10000 and its expenditure is 6000 and thus s...
Answer – a) 5% Solution: Initially I-E = S (I = Income, E = expenditure, S = saving) 10000-6000 = 4000(saving) Now, I = 11000 and E = 7200. So saving = I – E = 3800. [(4000-3800)/4000]*100 = 5%
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Community Answer
The income of a person is 10000 and its expenditure is 6000 and thus s...
Given:
Income = 10000
Expenditure = 6000
Savings = 4000

Solution:
1. In the next year, income is increased by 10%:
New income = 10000 + 10% of 10000 = 11000

2. Expenditure is increased by 20%:
New expenditure = 6000 + 20% of 6000 = 7200

3. New savings:
New savings = New income - New expenditure = 11000 - 7200 = 3800

4. Percentage change in savings:
Percentage change = ((New savings - Old savings) / Old savings) * 100
= ((3800 - 4000) / 4000) * 100
= (-200 / 4000) * 100
= -5%

Therefore, the new savings are 5% lower than the previous savings. The correct option is (a) 5%.
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