Mohan earned Rs. 4000 per month. From the last month his income increased by 8%. Due to rise in price, his expenditure increased by 12% and… — Answer & Discussion

Mohan earned Rs. 4000 per month. From the last month his income increased by 8%. Due to rise in price, his expenditure increased by 12% and his saving decreased by 4%. Find his initial expenditure and initial savings.

ARs. 3000, Rs. 1000
BRs. 1000, Rs. 3000
CRs. 2000, Rs. 4000
DRs. 4000, Rs. 2000

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Discussion 1

CCommunity25 Jun 2019

Initial expenditure of Mohan = E

Initial savings of Mohan = S

We know, income = expenditure + savings

Mohan earned Rs. 4000 per month

∴ E + S = 4000 ----(1)

From the last month his income increased by 8%.

∴ New income: 4000 + ( 8% of 4000)

= 4000 + 320

= Rs. 4320

His expenditure increased by 12%

∴ New expenditure: E + (12% of E)

= E + 0.12E

= 1.12E

His saving decreased by 4%

New savings: S – (4% of S)

= S – 0.04S

= 0.96S

Again, income = expenditure + savings

⇒ 4320 = 1.12E + 0.96S ----(2)

Solving equation (1) & equation (2) we get,

[To solve (1) & (2) multiply (1) with 0.96 or 1.12, then subtract (1) from (2)]

E = Rs. 3000 & S = Rs. 1000