Answer:
a. £2,500
b. £3,125
Step-by-step explanation:
The computation is shown below:
a. The original monthly expenditure is
Let us assume the original monthly expenditure be x
Monthly expenditure = x -15% of x
£2,125 = x - 0.15x
£2125 = 0.85x
x = £2125 ÷ 0.85
= £2,500
b. Now the monthy income is
Let us assume the monthly income be y
£2,500 = 80% of monthly income
£2,500 = 80% of y
y = £2,500 ÷ 80%
= £3,125
