The monthly expenditure of a person is 40% more than his monthly savings. If his monthly income increases by 40% and monthly expenditure increases by 60%, then he saves Rs. 2,070 more in a month. What is his initial monthly expenditure (in Rs.)?
- A20,250
- B22,425
- C24,150
- D19,320
Solution & Step-by-step Explanation
Let initial monthly savings be 100x.
Expenditure is 40% more than savings:
Expenditure=140x
Income=Expenditure+Savings=140x+100x=240x
New Income increases by 40%:
New Income=240x×1.40=336x
New Expenditure increases by 60%:
New Expenditure=140x×1.60=224x
New Savings=New Income−New Expenditure=336x−224x=112x
Increase in savings = 112x−100x=12x.
Given that increase in savings is Rs. 2,070:
12x=2070⟹x=
12
2070
=172.5
Initial monthly expenditure = 140x:
Initial Expenditure=140×172.5=Rs. 24,150
Expenditure is 40% more than savings:
Expenditure=140x
Income=Expenditure+Savings=140x+100x=240x
New Income increases by 40%:
New Income=240x×1.40=336x
New Expenditure increases by 60%:
New Expenditure=140x×1.60=224x
New Savings=New Income−New Expenditure=336x−224x=112x
Increase in savings = 112x−100x=12x.
Given that increase in savings is Rs. 2,070:
12x=2070⟹x=
12
2070
=172.5
Initial monthly expenditure = 140x:
Initial Expenditure=140×172.5=Rs. 24,150