Rahul saves Rs. 7200 more if he spends 65% of his income instead of 85%. Find the savings of Sumit whose income is 25% more than that of Rahul, and spends 85% of his income.
Let, the income of Rahul be Rs. x According to the question, 0.85x – 0.65x = 7200 Or, 0.20x = 7200 Or, x = 7200/0.20 = Rs. 36000 Savings of Sumit = 0.15 × 1.25 × 36000 = Rs. 6750
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