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

₹13,500

20% = \(\frac{1}{5}\) & 10% = \(\frac{1}{10}\)

Income = 15000

saving = \(\frac{1}{5}\) × 15000 = 3000

Expenditure = 15000 - 3000 = 12000

Increased Income = 15000 + \(\frac{1}{10}\) × 15000 = 16500

Saving remains same

So, saving = 3000

New expenditure = 16500  - 3000 = 13500