Answer & Solution
Answer: Option E
Solution:
Estimated cost of furniture and miscellaneous expenditure
$$\eqalign{
& = \text{Rs. } \frac{13+8}{100}\times120000 \cr
& = \text{Rs. } \frac{21}{100}\times120000 \cr
& = \text{Rs. 25200} \cr
& \text{Actual cost of furniture} \cr
& = \text{Rs. } \frac{88}{100}\times\frac{13}{100}\times120000 \cr
& = \text{Rs. 13728} \cr} $$
Actual cost of furniture and miscellaneous expenditure
= Rs. (13728 + 10200)
= Rs. 23928
Total amount spent in renovating the house
= Rs. (120000 - 25200 + 23928)
= Rs. 118728