Mr A spends 25% of his monthly income on food and 10% on his children’s education. Of the remaining income, he spends 40% on entertainment and transport together and 30% on medical care. He is left with Rs 7,800 after all this expenditure. What is Mr A’s monthly income?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Rs 40,000
The first two percentages are of the whole income; the next two are of the remaining income.
After food and education: \(100\%-25\%-10\%=65\%\) of the income is left
He spends \(40\%+30\%=70\%\) of this, so \(30\%\) of it is left
Amount left \(=30\%\) of \(65\%=0.3\times0.65=0.195\) of the income
\(0.195\times\text{income}=7800\)
Income \(\displaystyle =\frac{7800}{0.195}=40000\)
Mr A’s monthly income is Rs 40,000.