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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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  1. 20% of (12000-2000) = 2000
    30% of the remaining 10000 is 3000

    so now you can see how much she saves monthly, and thus can figure the annual savings.

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