SOLUTION: Madhu's income is 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

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Question 316770: Madhu's income is 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
Answer by moshiz08(60) About Me  (Show Source):
You can put this solution on YOUR website!
She pays 20% tax on monthly income above Rs 2000.
How much monthly income does she have above Rs 2000 ?
She makes Rs 12000 per month, so she makes Rs 10000 above Rs 2000. Thus she pays the 20% tax on the Rs 10000. That is, she pays Rs 2000 in tax.
Now she has Rs 10000 left after paying the Rs 2000 in tax. She spends 30% of what remains (i.e. Rs 10000). That is, she spends Rs 3000.
Now she has Rs 7000 left in savings each month!