Correct Answer - Option 4 : Rs. 20000
Formula Used:
Savings = Salary – Expenditure
Calculation:
Let the man's monthly salary be x
So, the initial savings = (20/100) × x = 0.2x
Hence, the initial expenses= x – 0.2x = 0.8x
If the expenses increased by 20%, the new expenses = [(100 + 20)/100] × 0.8x = 0.96x
So, the relation for savings becomes:
800 = x – 0.96x
⇒ x = Rs.20000
∴ The man's monthly salary is Rs.20,000