Question

A man saves 20% of his monthly salary If on account of increase in prices he is to increase his monthly expenses by 20% he is only able to save Rs 800 per month His monthly salary is

• A. Rs 40,000
• B. Rs 28,000
• C. Rs 24,000
• D. Rs 20,000

Answer 1

The correct option is D Rs 20,000

Given A man saves 20% of his monthly salary If on account of increase in prices he is to increase his monthly expenses by 20% he is only able to save Rs 800 per month

Let the salary be Rs 100
Savings = Rs 20; Expenditure = Rs 80
New expenditure = 120% of Rs 80 = Rs 96
New savings = Rs 100 - Rs 96 = Rs 4

$\therefore \frac{4}{100}x=800\Rightarrow 4x=80000\Rightarrow x=20000$ Rs