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The monthly income of a person is Rs15,000. He saves 20% of his income. If his income increases by 10% and his nominal
savings remains the same, then what will be his new expenditure?
Rs13,000
Rs14,500
Rs13,500
Rs14,000
- Current income: Rs15,000.
- Current savings: 20% of Rs15,000 = Rs3,000.
- Current expenditure: Rs15,000 - Rs3,000 = Rs12,000.
- Income increase: 10% of Rs15,000 = Rs1,500.
- New income: Rs15,000 + Rs1,500 = Rs16,500.
- Savings remain the same: Rs3,000.
- New expenditure: Rs16,500 - Rs3,000 = Rs13,500.
- Option 1: Rs13,000
- Option 2: Rs14,500
- Option 3: Rs13,500
- Option 4: Rs14,000
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