Question

P uses her income to incur some monthly expenditure to save rest of the money. 25% of income is spent by her on rent, 16% on transportation and 34% on grocery. If P saves Rs. 20,000, find the total income earned by individual P.
1. Rs. 80,000
2. Rs. 65,000
3. Rs. 70,000
4. Rs. 50,000

Answer 1

Correct Answer - Option 1 : Rs. 80,000

Given:

P uses her income to incur some monthly expenditure to save rest of the money. 25% of income is spent by her on rent, 16% on transportation and 34% on grocery.

P saves Rs. 20,000.

Concepts used:

Income = Expenditure + Savings

Calculation:

25% of income is spent by P on rent, 16% on transportation and 34% on grocery.

Let total income of P be Rs. x.

 ⇒ Expenditure on rent = 0.25x

⇒ Expenditure on transportation = 0.16x

⇒ Expenditure on grocery = 0.34x

⇒ Total expenditure of P = 0.25x + 0.16x + 0.34x = 0.75x

Income = Expenditure + Savings

⇒ Savings done by P = x – 0.75x = 0.25x

P saves Rs. 20,000.

⇒ 0.25x = Rs. 20,000

⇒ x = Rs. 80,000

∴ P earns total income of Rs. 80,000.