Madhu's income us rs 12000 per month. she pays 20% tax on monthly income above rs 2000 and she spends 30%of the remaining income. How much does she save annually?
Answers
Answer
Step-by-step explanation:
Madhu's monthly income = Rs. 12000
Tax payable imonthly income = 12000-2000=10000
∵ 100 taxable income payable tax = 20
∴ 1 -------------------------------------------= 20÷100
∴ 10000 -------------------------------------= 20×10000÷100
= 2000
Net money available after tax paid = 12000-2000=10000
Now 30% Madhu spend out of it = 10000×30÷100
= 3000
Monthly savings = 10000-3000=7000
Months in a year = 12
Annual savings = 7000×12
= 84000
Answer- Madhu saves Rs.84000/- annually