Question

Bhavya earns ₹ 50,000 per month and spends 80% of it. Due to pay revision, her monthly income increases by 20% but due to price rise, she has to spend 20% more. Find her new savings.

Answer 1

Given, Bhavya earns per month = ₹ 50000

She spends per month = 80% of 50000 = `80/100 xx 50000` = ₹ 40000

Then, her per month savings = 50000 – 40000 = ₹ 10000  ...[∵ Saving = Total income – Expenditure]

Also, given increment in monthly income = 20% of 50000

= `20/100 xx 50000`

= ₹ 10000

∴ Bhavya’s new income = 50000 + 10000 = ₹ 60000

Increase in expenditure = 20% of 40000

= `20/100 xx 40000`

= ₹ 8000

So, new expenditure = 40000 + 8000 = ₹ 48000

Now, Bhavya’s new savings = 60000 – 48000 = ₹ 12000