Question

Ram spent 30% of his monthly income on Food, 10% on room rent, He saves 25% from remaining amount, After that remaining amount he invested in Mutual funds and life insurance policy in ratio of 5 : 4 respectively and difference is Rs.2,500, Find monthly income of Ram.

1. ​Rs.30,000
2. ​Rs.40,000
3. Rs.50,000
4. ​Rs.45,000
5. None of these

Answer 1

Correct Answer - Option 3 : Rs.50,000

Given:

Expenditure on food = 30%

Expenditure on room rent = 10%

Ram saves 25% from remaining amount

After saving Ram invest in Mutual funds and life insurance policy in ratio of 5 : 4 respectively and difference is Rs.2,500

Concept:

If A is x% of B

Then, x% = (A/B) × 100

Calculation:

Let, Ram’s monthly income = Rs.100x

Expenditure on food = (30/100) × 100x

⇒ Rs.30x

Expenditure on room rent = (10/100) × 100x

⇒ Rs.10x

Remaining amount after expend on room rent = 100x – 30x – 10x

⇒ Rs.60x

Saving amount of Ram = (25/100) × 60x

⇒ Rs.15x

Remaining amount after saving Rs.15x = 60x – 15x

⇒ Rs.45x

Now, Rs.45x invest in Mutual funds and life Insurance policy in ratio of 5 : 4

Invest in Mutual funds = (5/9) × 45x

⇒ Rs.25x

Invest in Insurance policy = (4/9) × 45x

⇒ Rs.20x

Amount Invested in Mutual funds – Amount Invested in Insurance policy = Rs.2500

25x – 20x = 2500

⇒ 5x = 2500

⇒ x = 500

Ram’s monthly income = 100 × 500

⇒ Rs.50,000

∴ Monthly income of Ram is Rs.50,000.