Vanshika invests Rs. 68160, which is 16% of her annual income, in mutual funds. What is her monthly income?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs. 35500
The investment is 16% of the annual income, that is, 16 of every 100 rupees earned in the year. So the annual income is the investment divided by 16 and multiplied by 100, and the monthly income is one-twelfth of the annual income.
Annual income \(\displaystyle =\frac{68160\times100}{16}=426000\), that is, Rs. 4,26,000 a year
Monthly income, sharing the annual income over 12 months: \(\displaystyle\frac{426000}{12}=35500\), that is, Rs. 35,500