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    Question

    A man's income was raised by 25%, which led him to

    increase his expenditure by 12.5%. As a result, his savings grew from Rs. 4,800 to Rs. 8,400. What is his new income after the increase?
    A Rs. 24,000 Correct Answer Incorrect Answer
    B Rs. 30,000 Correct Answer Incorrect Answer
    C Rs. 36,000 Correct Answer Incorrect Answer
    D Rs. 40,000 Correct Answer Incorrect Answer

    Solution

    Let the initial income of the man be Rs. '20x' and initial expenditure of the man be Rs. '8y'. New income of the man = 20x X 1.25 = Rs. '25x' New expenditure of the man = 8y X 1.125 = Rs. '9y' ATQ; 20x - 8y = 4800 ......... (I) 25x - 9y = 8400 .......... (II) On subtracting 5 X equation (I) from 4 X equation (II), we have; 100x - 100x - 36y + 40y = 33600 - 24000 Or, 4y = 9600 So, y = 2400 So, 20x - 8 X 2400 = 4800 Or, 20x = 4800 + 19200 Or, 20x = 24000 So, x = 1200 So, new income = 1200 X 25 = Rs. 30,000

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