Question

A man spends 20% on his income on child's education and 70% of the remaining on other items. If the difference between his saving and his expenditure on child's education is Rs. 1600 then, find his total income.
1. Rs. 35,000
2. Rs. 32,000
3. Rs. 42,000
4. Rs. 40,000

Answer 1

Correct Answer - Option 4 : Rs. 40,000

Given:

Expenditure on child's education = 20%

Expenditure on other items = 70% of the remaining

Difference between savings and expenditure = Rs. 1600

Concept used:

Savings = Total income – Expenditure

Calculation:

Let the total income be Rs.100x

Expenditure on child's education = 20% of 100x

⇒ 20x

Remaining money = (100x – 20x)

⇒ 80x

Expenditure on other items = 70% of 80x

⇒ 56x

Total expenditure = (20x + 56x)

⇒ 76x

Savings = 100x – 76x 

⇒ 24x

Difference between Savings and expenditure on education = 24x – 20x

⇒ 4x

Now, according to question

4x = Rs. 1600

⇒ 100x = Rs. (1600/4x) × 100x

⇒ Rs. 40,000

∴ The income of man is Rs. 40,000