The income of Anil is ₹45,000. He saves 16% of his income. If his income decreases by 5% and the expenditure increases by 2%, then his savings decrease by:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. ₹3,006.
His saving = 16% of 45,000 = Rs. 7200
His expenditure = 45,000 - 7200 = Rs. 37,800
Now, his income after 5% decrement = 45000 - 5% of 45,000 = 45000 - 2250 = Rs. 42,750
His expenditure after 2% increment = 37,800 + 2% of 37,800 = 37,800 + 756 = Rs. 38,556
His savings becomes = 42,750 - 38,556 = Rs. 4194
Now, his savings decreased by = 7200 - 4194 = Rs. 3006