Question

Ram spent 40% of his monthly income on Food, and 20% of his income on room rent. He saves 25% from the remaining amount and invested the amount left in Mutual funds and life insurance policy in the ratio of 3 : 2 respectively and the difference between the respective investments is Rs.1,800, Find monthly income of Ram.

1. Rs.32,000
2. Rs.28,000
3. Rs.25,000
4. Rs.30,000
5. None of these

Answer 1

Correct Answer - Option 4 : Rs.30,000

Given:

Expenditure on food = 40%

Expenditure on room rent = 20%

Ram saves 25% from remaining amount

After saving Ram invest in Mutual funds and life insurance policy in ratio of 3 : 2 respectively and difference is Rs.1,800

Concept:

If A is x% of B

Than, x% = (A/B) × 100

Calculation:

Let, Ram’s monthly income = Rs.100x

Expenditure on food = (40/100) × 100x

⇒ Rs.40x

Expenditure on room rent = (20/100) × 100x

⇒ Rs.20x

Remaining amount after expend on room rent = 100x – 40x – 20x

⇒ Rs.40x

Saving amount of Ram = (25/100) × 40x

⇒ Rs.10x

Remaining amount after saving Rs.10x = 40x – 10x

⇒ Rs.30x

Now, Rs.30x is invested in Mutual funds and life Insurance policy in ratio of 3 : 2

Invest in Mutual funds = (3/5) × 30x

⇒ Rs.18x

Invest in Insurance policy = (2/5) × 30x

⇒ Rs.12x

Amount Invested in Mutual funds – Amount Invested in Insurance policy = Rs.1800

18x – 12x = 1800

⇒ 6x = 1800

⇒ x = 300

Ram’s monthly income = 100 × 300

⇒ Rs.30,000

∴ Monthly income of Ram is Rs.30,000.