Question

The income of Raman is ₹75400. He saves 23% of his income. If his income increases by 27% and expenditure increases by 50%, then his savings will:

• A. decrease by ₹8671
• B. increase by ₹8670
• C. increase by ₹8667
• D. decrease by ₹8666

Answer 1

Answer:

A. decrease by ₹8671

Step 1: Calculate present savings

Income = ₹75,400
Savings = 23% of income

$\text{Savings} = \frac{23}{100} \times 75400 = ₹17,342$

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Step 2: Calculate present expenditure

$\text{Expenditure} = 75400 - 17342 = ₹58,058$

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Step 3: Calculate new income (27% increase)

$\text{New Income} = 75400 \times 1.27 = ₹95,758$

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Step 4: Calculate new expenditure (50% increase)

$\text{New Expenditure} = 58058 \times 1.5 = ₹87,087$

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Step 5: Calculate new savings

$\text{New Savings} = 95758 - 87087 = ₹8,671$

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Step 6: Find the decrease in savings

$\text{Decrease} = 17342 - 8671$= ₹8,671

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Final Answer: Savings decrease by ₹8,671.