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Mr. Hari spends 36% of his income on food items and 25% of the remaining amount on clothes, medical and conveyance. He saves half of the remaining amount every month. If he saves ₹1,80,000 every year, then find his monthly income.
₹6,50,040
₹7,50,000
₹54,170
₹62,500
₹62,500
Work backwards from the annual savings to find the monthly savings, then use successive percentage multipliers to find the total monthly income.
Mr. Hari spends 36% of his income on food items, 25% of the remaining amount on clothes, medical and conveyance, and saves half of the remaining amount every month. His annual savings = ₹1,80,000.
MonthlySavings=2Remaining,AnnualSavings=MonthlySavings×12
Work backwards from the annual savings to find the monthly savings, then use successive percentage multipliers to find the total monthly income.
Confusing annual savings with monthly savings. Remember to divide the given annual savings by 12 to find the monthly savings before proceeding.
Calculate Monthly Savings
Given that Mr. Hari saves ₹1,80,000 every year, his monthly savings is calculated by dividing by 12.
MonthlySavings=121,80,000=₹15,000
Find Amount Remaining Before Savings
He saves half of the remaining amount after all expenses. Thus, the total remaining amount after food, clothes, medical, and conveyance is double his monthly savings.
Remaining Amount=15,000×2=₹30,000
Find Amount Remaining After Food
He spends 25% of the remaining amount after food on clothes, medical, and conveyance. This means 75% of the amount after food is left.
Amount after food×0.75=30,000⟹Amount after food=0.7530,000=₹40,000
Calculate Total Monthly Income
He spends 36% of his income on food items, leaving 100%−36%=64% of his income.
Income×0.64=40,000⟹Income=0.6440,000=₹62,500
D is correct because the monthly income calculated step-by-step is ₹62,500.