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Mohan's income is Rs 15500 per month. He saves 11%. of his income. If his income increases by 10%, then he reduces his savings by 1%, how much does he save now?

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Rs. 1705

Rs. 105

Rs. 175

Rs. 170

answer is A.

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Detailed Solution

Given, Mohan's income is Rs 15500 per month. He saves 11%. of his income.
His income increases by 10%, then he reduces his savings by 1%
Salary before incrementing = Rs 15500.
Savings = 11% of 15500.
We know that a% of b =

\frac{a}{100} \times b

where a and b are real numbers.

\Rightarrow

Savings =

\frac{11}{100} \times 15500

\Rightarrow

Savings = Rs. 1705
Salary after incrementing = 15500 + 10% of 15500.

\Rightarrow

Salary after incrementing =

15500 + \frac{10}{100} (15500)

\Rightarrow

Salary after incrementing = 15500 + 1550

\Rightarrow

Salary after incrementing = Rs. 17050
Saving after increment = 10% of 17050.

\Rightarrow

Saving after increment =

\frac{10}{100} (17050)

\Rightarrow

Saving after increment = Rs. 1705
The new saving is Rs. 1705.
Hence, option 1 is correct.

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