Shushan's monthly income is Rs. 45,000 and his monthly expenditure is Rs. 33,000 if his monthly income is increased by 22% while monthly expenditure is increased by 11% then what is his new monthly savings (in Rs.)?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 18,270.
Given:
Shushan's monthly income = Rs. 45,000
His monthly expenditure = Rs. 33,000
As we know,
Savings = Income - Expenditure
Savings = 45000 - 33000 = Rs. 12000
Now, His monthly income after increment = 45000 × 122/100 = Rs. 54900
His monthly expenditure after increment = 33000 × 111/100 = Rs. 36630
Hence, his new monthly savings = 54900 - 36630 = Rs. 18270