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Out of his total income, Sanjay spends 20% on house rent and 70% of the rest on household expenses. If he saves ₹1,800, then his total income is:
₹9,000
₹10,000
₹7,500
₹8,000
₹7,500
Use successive percentages: Let total income be I. Remaining after rent = 0.8I. Remaining after household expenses = 0.8I×0.3=0.24I. Equate 0.24I=1800 to get I=0.241800=7500.
Sanjay spends 20% of his total income on house rent, 70% of the rest on household expenses, and saves ₹1,800.
Income×(1−10020)×(1−10070)=Savings
Use successive percentages: Let total income be I. Remaining after rent = 0.8I. Remaining after household expenses = 0.8I×0.3=0.24I. Equate 0.24I=1800 to get I=0.241800=7500.
Many students subtract 20% and 70% to assume 10% is left for savings (10%=1800), which is incorrect because 70% is spent on the 'rest' (remaining 80%), not the total income.
Assume Total Income
Let Sanjay's total income be I.
Income=I
Calculate Remaining Income after House Rent
He spends 20% of his total income on house rent, so the remaining amount is 80% of I.
Remaining=0.80I
Calculate Savings after Household Expenses
He spends 70% of the rest on household expenses, which means he saves 30% of the remaining amount.
Savings=0.30×0.80I=0.24I
Equate Savings and Solve for Total Income
Given that his savings equal ₹1,800, we set 0.24I=1800 and solve for I.
I=0.241800=7500
C is correct because Sanjay's savings amount to 24% of his total income, which equates to ₹1,800, giving a total income of ₹7,500.
Successive percentage problems are heavily tested across quantitative aptitude in profit-loss, population growth, and successive discounts.