The monthly expenditure of a person is 40% more than his monthly savings. If his monthly income increases by 40% and monthly expenditure increases by 60%, then he saves ₹2,070 more in a month. What is his initial monthly expenditure (in ₹)?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 24,150.
Let initial savings = 100x
Expenditure = 140x and Income = 240x
New income = 240x × 1.4 = 336x
New expenditure = 140x × 1.6 = 224x
New savings = 336x - 224x = 112x
112x - 100x = 12x = 2070
⇒ x = 2070/12 = 172.5
Initial expenditure = 140 × 172.5 = 24150