A earns 15000 Rs. per month and spends 80% of it. Due to pay revision, his monthly income has increased by 12.5% but due to price rise, he has to spend 22.5% more. His new savings are?
Answer & explanation
Correct answer: option 4
Income spend saving
before → 100 - 80 = 20
↓+12.5% ↓+22.5%
Now → 112.5 - 98 = 14.5
Initial Savings = 15000 × 20% = 3000
Initial saving ratio = 20
New saving ratio = 14.5
Therefore,
20R = 3000
1R = 150
New savings = 14.5 R = 14.5 × 150 = Rs.2175/-