Question

Bhavya earns ₹ 50000 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 = $\frac{80}{100}\times 50000$= ₹ 40000
Then, her per month savings = 50000 - 40000 = ₹10000
[$\because$ saving = total income - expenditure]
Also, given increment in monthly income = 20% of 50000
$\frac{20}{100}\times 50000$ = ₹ 10000
$\therefore$ Bhavya's new income = 50000 + 10000 = ₹ 60000
Increase in expenditure = 20% of 40000 = $\frac{20}{100}\times 40000$ = ₹ 8000
So, new expenditure = ₹ (40000 + 8000) = ₹ 48000
Now, Bhavya's new savings = 60000 - 48000 = ₹ 12000