Given below are two statements. In the light of the above statements, choose the correct answer from the options given below.

Statement I:Selling at 10 percent versus 15 percent profit gives Rs. 160 more, so the cost price is Rs. 4200.

Statement II:A man spends 80 percent of earnings; earnings rise 25 percent and expenses 20 percent, so savings rise 45 percent.

ABoth Statement I and Statement II are true

BBoth Statement I and Statement II are false

CStatement I is true but Statement II is false

DStatement I is false but Statement II is true ✓ Correct

Correct answer: (D) Statement I is false but Statement II is true

Explanation

Statement 1 is false but Statement 2 is true.

the 5% profit gap equals Rs. 160, so 5% of CP = 160.

CP = 160 / 0.05 = 3200, not 4200.

spending 80%, new earnings 1.25E, new expense 0.96E.

new savings = 0.29E versus old 0.20E.

rise = 0.09/0.20 = 45 percent, so Statement 2 holds.

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