Bhavya earns ₹ 50,000 per month and spends 80% of it. Due to pay revision, her monthly income increases by 20% but due to price rise, she has to spend 20% more. Find her new savings.
Monthly income of Bhavya = ₹ 50,000
Money spent by her = 80% of ₹ 50,000
=80/100× 50,000 = ₹ 40,000
Due to pay revision, income is increased by 20%
i.e. 50,000 (1+20/100) = 50,000 × 120/100 = Rs 60,000
Money spent due to price rise
= Rs 40,000 (1+ 20/100) = Rs 40,000 × 120/100
= Rs 48000
So, the new savings = ₹ 60,000 – ₹ 48,000 = ₹ 12,000