Question

A group of four friends decided to stay together by contributing money towards the rent of a house. The rent was rupees 2000 per month. 

• How could this be shared among them? 

• We also know that two of them earned Rs. 3000 rupees per month and the other two Rs. 7000 per month. Is there some other way of sharing the cost so that each one of them feels the same pinch? 

• Which way of sharing would you prefer and why?

Answer 1

1. One method of sharing the rent is the distribution of the rent equally among all the four members. Then each one has to pay Rs. 500/- (i.e. 2000/4 = 500). 

2. Another method of sharing is that everyone has to pay 10% of their earnings as rent. In that case – 

a) Two of them whose income is Rs. 3000/- have to pay 10% of 3000/- = 300/- each.

b) Two of them whose income is Rs. 7000/- have to pay 10% of 7000/- = 700/- each. 

In my opinion 2nd method of sharing is the best as low income people are paying the lower share whereas high income people are paying the higher share of rent.