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

Let the salary be Rs 100
Savings $=$ Rs 20 ; Expenditure $=$ Rs 80
New expenditure $=$ 120% of Rs 80 $=$ Rs 96.
New savings $=Rs100-Rs96=Rs4$
$⟹4\%x=Rs800⟹x=Rs20,000$