Question

The income of ‘A’ increases by 35% every year. If the present income of ‘A’ is Rs. 45562.5 and his expenditure 2 years ago from now was Rs. 12000, then find his savings 2 years ago from now.

A Rs. 10000 Correct Answer Incorrect Answer
B Rs. 13500 Correct Answer Incorrect Answer
C Rs. 13700 Correct Answer Incorrect Answer
D Rs. 13000 Correct Answer Incorrect Answer

Solution

According to the question, Income of ‘A’ 2 years ago = 45562.5/(1.35)2 = Rs. 25000 Required savings = 25000 – 12000 = Rs. 13000

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