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    Question

    Monthly savings of ‘A’ is Rs. 500 more than his

    monthly expenditure and his total monthly income is Rs. 900. If his monthly income is increased by 40% and his monthly savings is increased by 37.5%, then find the increase in his monthly expenditure
    A Rs. 90.5 Correct Answer Incorrect Answer
    B Rs. 93.5 Correct Answer Incorrect Answer
    C Rs. 97.5 Correct Answer Incorrect Answer
    D Rs. 91.5 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Monthly savings of ‘A’ = (900 + 500)/2 = Rs. 700 Monthly expenditure of ‘A’ = 900 – 700 = Rs. 200 Increased monthly expenditure of ‘A’ = 1.40 × 900 – 1.375 × 700 = Rs. 297.5 Desired increase = 297.5 – 200 = Rs. 97.5

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