Monthly savings of ‘A’ is Rs. 500 more than his monthly expenditure and his total monthly income is Rs. 5900. If his monthly income is increased by 40% and his monthly savings is increased by 37.5%, then find the increase in his monthly expenditure
Monthly savings of ‘A’ = (5900 + 500)/2 = Rs. 3200 Monthly expenditure of ‘A’ = 5900 – 3200 = Rs. 2700 Increased monthly expenditure of ‘A’ = 1.40 × 5900 – 1.375 × 3200 = Rs. 3860 Desired increase = 3860 – 2700 = Rs. 1160
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