Question

Sunaina works in a private company and her annual income is 3 lakhs. He has a new and an old car. 5% of his income is spent on the upkeep of the new car and 2% more on the old one than the expenditure on the new one. What is his total annual expenditure on the maintenance of both the vehicles?
1. Rs. 20000
2. Rs. 36000
3. Rs. 12500
4. Rs. 25000

Answer 1

Correct Answer - Option 2 : Rs. 36000

Given:

Annual income of Sunaina = 3 lakhs

Expense on New car = 5% of annual income

Expense on Old car = 5 + 2 = 7% of annual income

Concept used:

Total expense = expense on 1 commodity + expense of 2 commodity + so on

Calculation:

According to the question,

5 + 7 = 12%

So, Expense = 300000 × 12/100

⇒ Rs. 36000

∴ His total annual expenditure on the maintenance of both the vehicles is Rs. 36000