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    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.
    A Rs. 6500 Correct Answer Incorrect Answer
    B Rs. 6200 Correct Answer Incorrect Answer
    C Rs. 6000 Correct Answer Incorrect Answer
    D Rs. 6300 Correct Answer Incorrect Answer

    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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