Correct Answer - Option 4 : Neither a nor b

**Given****∶**

50% of his income spends on parties.

20% of the remaining spends on food.

Savings are 1/4 of the remaining amount after spending on parties and food.

Annual savings = Rs. 36600

**Formula** **Used**∶

Basics of percentage.

**Calculation****∶**

According to question,

Money spend on parties = 50%

Remaining amount = 50%

Money spend on food = 20% of 50% = 10%

Remaining amount = (100 - 50 -10) = 40%

Savings = 1/4 of 40% = 36600

⇒ 10% = 36600

100% = 366000

So his monthly income = 366000/12 = Rs. 30,500

**∴ The correct option is 4 (neither a and b).**