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Question
Mohan's income is Rs 15500 per month. He saves 11% of his income. If his income increases by 10%, then he reduces his saving by 1%, how much does he save now?
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Solution
Mohan's saving = 11 % of 15500
\[ = \frac{11}{100} \times 15500\]
= Rs . 1705
It is given that Mohan's income increases by 10 %.
\[ \therefore\text{ Increase in income }= \frac{10}{100} \times 15500 = Rs 1550\]
Increased income = Rs (15500 + 1550) = Rs 17050
Now, percentage of saving = (11 - 1) = 10 %
\[ \therefore\text{ Saving }= \frac{10}{100} \times 17050 = Rs 1705\]
Thus, the amounts of his present and earlier savings are the same.
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