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The monthly income of a person was Rs. 13500 and his monthly expenditure was Rs. 9000. Next year his income increases by 14% and his expenditure by 7%. Then the percentage increase in his savings is—
  • a)
    7%
  • b)
    21%
  • c)
    28%
  • d)
    35%
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
The monthly income of a person was Rs. 13500 and his monthly expenditu...
Monthly income = Rs. 13,500
Monthly expenditure = Rs. 9000
⇒ Monthly savings = 13500 – 9000 = Rs. 4500
As per question next year
Monthly income = 13500 × 114 /100 = Rs. 15390
Monthly income = 9000 × 107/100 = Rs. 9630
∴ Monthly savings = 15390 – 9630 = Rs. 5760
∴ Percentage of required in savings
= (5760 – 4500)/4500 × 100% = 28%
 
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Most Upvoted Answer
The monthly income of a person was Rs. 13500 and his monthly expenditu...
First, let's calculate the person's savings before the increase in income and expenditure.
Savings = Income - Expenditure
Savings = Rs. 13500 - Rs. 9000
Savings = Rs. 4500

Next, let's calculate the person's income after the increase.
New income = Rs. 13500 + (14/100) * Rs. 13500
New income = Rs. 13500 + Rs. 1890
New income = Rs. 15390

Next, let's calculate the person's expenditure after the increase.
New expenditure = Rs. 9000 + (7/100) * Rs. 9000
New expenditure = Rs. 9000 + Rs. 630
New expenditure = Rs. 9630

Now, let's calculate the person's savings after the increase.
New savings = New income - New expenditure
New savings = Rs. 15390 - Rs. 9630
New savings = Rs. 5760

Finally, let's calculate the percentage increase in savings.
Percentage increase in savings = (New savings - Old savings) / Old savings * 100
Percentage increase in savings = (5760 - 4500) / 4500 * 100
Percentage increase in savings = 1260 / 4500 * 100
Percentage increase in savings = 28%

Therefore, the percentage increase in the person's savings is 28%.
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The monthly income of a person was Rs. 13500 and his monthly expenditure was Rs. 9000. Next year his income increases by 14% and his expenditure by 7%. Then the percentage increase in his savings is—a)7%b)21%c)28%d)35%Correct answer is option 'C'. Can you explain this answer?
Question Description
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