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.

A Rs. 5200 Correct Answer Incorrect Answer
B Rs. 5300 Correct Answer Incorrect Answer
C Rs. 5500 Correct Answer Incorrect Answer
D Rs. 5400 Correct Answer Incorrect Answer

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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