Question
The income of ‘A’ increases by 25% every year. If
the present income of ‘A’ is Rs. 28125 and his expenditure 2 years ago from now was Rs. 12000, then find his savings 2 years ago from now.Solution
According to the question, Income of ‘A’ 2 years ago = 28125/(1.25)2 = Rs. 18000 Required savings = 18000 – 12000 = Rs. 6000
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