Question
The income of ‘A’ increases by 20% every year. If
the present income of ‘A’ is Rs. 23040 and his expenditure 2 years ago from now was Rs. 10500, then find his savings 2 years ago from now.Solution
According to the question, Income of ‘A’ 2 years ago = 23040/(1.2)2 = Rs. 16000 Required savings = 16000 – 10500 = Rs. 5500
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