Rumi used to save 20% of her income. If her income went up by 30%, while her expenditure went up by 40%, her nominal savings went down by ₹750. Find Rumi's initial income (in ₹).
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Correct answer: B
Explanation
The correct answer is option 2 i.e. 37,500.
Let Rumi's income = 100x
Savings = 20x
Expenditure = 100x - 20x = 80x
New income = 130x
New expenditure = 80x × (140/100) = 112x
So, new savings = 130x - 112x = 18x
Now, 20x - 18x = 750
⇒ 2x = 750
⇒ 100x = (750/2) × 100 = 37500
Therefore, Rumi's initial income was ₹37,500.