Finding Sandeep's Annual Income

This problem requires us to calculate Sandeep's total annual income. We are given information about the percentages he spends on different items from his income and the final amount he saves. The key is to track the remaining income after each expenditure.

Detailed Breakdown of Income and Expenses

Let the total annual income of Sandeep be represented by the variable \( I \).

1. Step 1: Calculate income remaining after food expenses.

   Sandeep spends 32% of his annual income on food. This means he has \( (100\% - 32\%) = 68\% \) of his income left.

   Income remaining after food = \( I \times (1 - 0.32) \) = \( 0.68I \)

2. Step 2: Calculate income remaining after travelling expenses.

   He then spends 20% of the *remaining* income (which is \( 0.68I \)) on travelling. So, the income left after travelling is \( (100\% - 20\%) = 80\% \) of \( 0.68I \).

   Income remaining after travelling = \( 0.68I \times (1 - 0.20) \) = \( 0.68I \times 0.80 \) = \( 0.544I \)

3. Step 3: Calculate income remaining after clothes expenses.

   Next, Sandeep spends 35% of the *further remaining* income (which is \( 0.544I \)) on clothes. The income left after buying clothes is \( (100\% - 35\%) = 65\% \) of \( 0.544I \).

   Income remaining after clothes (Savings) = \( 0.544I \times (1 - 0.35) \) = \( 0.544I \times 0.65 \)

   Income remaining after clothes = \( 0.3536I \)

4. Step 4: Equate the final remaining income to the savings amount.

   We are told that Sandeep still saves ₹70,720 per year. This amount represents the final remaining income after all expenses.

   Therefore, we can set up the equation: \( 0.3536I = 70,720 \)

5. Step 5: Solve for the total annual income (I).

   To find Sandeep's total annual income, we need to solve the equation for \( I \):

   \( I = \frac{70,720}{0.3536} \)

   Performing the division:

   \( I = 200,000 \)

Final Annual Income Determination

Based on the calculations, Sandeep's total annual income is ₹2,00,000.