Mohit's salary is ₹15,000 per month. He spends ₹5,000 on house rent, ₹2,000 on bills and rest of the amount is his monthly savings. Find his savings in a year, if in the month of his birthday he spent his complete monthly saving for birthday celebration.

Correct option is A

Given:

Mohit's monthly salary = ₹15,000.

He spends ₹5,000 on house rent and ₹2,000 on bills.

Rest of the amount is his monthly savings.

In the month of his birthday, he spends his complete monthly savings on celebrations.

Formula Used:

Monthly savings = Salary - (House rent + Bills)

Annual savings = (Monthly savings × 12) - Monthly savings for the birthday month

Solution:

Calculate Mohit's monthly savings.

Monthly savings = ₹15,000 - (₹5,000 + ₹2,000)

= ₹15,000 - ₹7,000

= ₹8,000

Calculate his annual savings.

In the month of his birthday, he spends his ₹8,000 savings.

Annual savings = (₹8,000 × 12) - ₹8,000

= ₹96,000 - ₹8,000

= ₹88,000

Mohit's annual savings, after spending on his birthday celebration, are ₹88,000.