All Exams Test series for 1 year @ ₹349 only
Question

Rohit donates 15% of his monthly income to charity funds. The remaining income is spent in the following manner: 35% on food, 20% on rent, 17% on bills, 8% on clothing, and the remaining is kept as savings. If the amount saved each month is ₹14,620, then what is Rohit's monthly income?

The correct answer is

₹86,000

Understanding Rohit's Income Distribution

This problem involves calculating Rohit's total monthly income based on how he distributes it among charity, various expenses, and savings. We are given the percentage of income allocated to each category and the actual amount saved.

The key is to understand that some percentages (food, rent, bills, clothing, savings) are calculated from the remaining income after the charity donation, not from the total monthly income.

Breaking Down the Percentages

Let's list the percentages given:

  • Donated to charity: 15% of total income.
  • Remaining income: 100% - 15% = 85% of total income.

The remaining 85% is then spent as follows:

  • Food: 35% of the remaining income.
  • Rent: 20% of the remaining income.
  • Bills: 17% of the remaining income.
  • Clothing: 8% of the remaining income.
  • Savings: The remaining portion of the remaining income.

Calculating the Percentage Saved from Remaining Income

First, let's find the total percentage of the remaining income that is spent on expenses:

Total percentage spent from remaining income = Percentage on Food + Percentage on Rent + Percentage on Bills + Percentage on Clothing

Total percentage spent from remaining income = $35\% + 20\% + 17\% + 8\%$

Total percentage spent from remaining income = $80\%$ of the remaining income.

Now, we can find the percentage of the remaining income that is saved:

Percentage saved from remaining income = 100% (remaining income) - Total percentage spent from remaining income

Percentage saved from remaining income = $100\% - 80\% = 20\%$ of the remaining income.

Relating Savings Amount to Total Income

We know that Rohit saves 20% of his remaining income, and the remaining income is 85% of his total monthly income. So, the amount saved is 20% of 85% of his total monthly income.

Let Rohit's total monthly income be $I$.

  • Remaining income = $85\%$ of $I = 0.85 \times I$.
  • Amount saved = $20\%$ of (Remaining income) = $20\%$ of ($0.85 \times I$).
  • Amount saved = $0.20 \times 0.85 \times I$.

Calculating $0.20 \times 0.85$:

$0.20 \times 0.85 = \frac{20}{100} \times \frac{85}{100} = \frac{1}{5} \times \frac{85}{100} = \frac{85}{500} = \frac{17}{100} = 0.17$.

So, the amount saved is 17% of Rohit's total monthly income ($0.17 \times I$).

Calculating Total Monthly Income

We are given that the amount saved each month is ₹14,620.

Therefore, we can set up the equation:

$0.17 \times I = 14620$

To find $I$, we divide the amount saved by the percentage (as a decimal) it represents of the total income:

$I = \frac{14620}{0.17}$

To make the division easier, we can multiply both the numerator and the denominator by 100:

$I = \frac{14620 \times 100}{0.17 \times 100} = \frac{1462000}{17}$

Now, we perform the division:

$1462000 \div 17$

Step Calculation Result
1 $146 \div 17$ 8 with remainder $146 - (17 \times 8) = 146 - 136 = 10$
2 Bring down the next digit (2). $102 \div 17$ 6 with remainder $102 - (17 \times 6) = 102 - 102 = 0$
3 Bring down the remaining zeros (000). Add 000 to the result. Result is 86000

So, $I = 86000$.

Rohit's total monthly income is ₹86,000.

Verification

Let's quickly check if the numbers add up with a total income of ₹86,000.

  • Charity: 15% of 86000 = $0.15 \times 86000 = ₹12,900$.
  • Remaining income: $86000 - 12900 = ₹73,100$. (Or $85\%$ of $86000 = 0.85 \times 86000 = ₹73,100$)

Now, let's calculate savings from the remaining income:

  • Percentage saved from remaining income is 20%.
  • Amount saved = 20% of ₹73,100 = $0.20 \times 73100 = ₹14,620$.

This matches the amount given in the problem. Thus, our calculation is correct.

Conclusion on Rohit's Monthly Income

Based on the detailed breakdown of expenses and savings as percentages of the total and remaining income, and using the given savings amount, we calculated Rohit's total monthly income. The calculation confirms that his monthly income is ₹86,000.

Revision Table: Key Percentages

Category Basis Percentage Calculation for ₹86,000 Income
Charity Total Income 15% $0.15 \times 86000 = ₹12,900$
Remaining Income Total Income 85% $0.85 \times 86000 = ₹73,100$
Spent (Food, Rent, Bills, Clothing) Remaining Income 80% $0.80 \times 73100 = ₹58,480$
Savings Remaining Income 20% $0.20 \times 73100 = ₹14,620$
Savings Total Income 17% (calculated as 20% of 85%) $0.17 \times 86000 = ₹14,620$

Additional Information: Understanding Income Distribution Problems

Income distribution problems often test your ability to work with percentages relative to different base amounts (total income vs. remaining income). It's crucial to read carefully and identify which percentage applies to which base.

  • Sequential Percentages: When a percentage is taken from the "remaining" amount after a previous deduction, you must calculate the value of the remaining amount first, or multiply the percentages applied sequentially to the original total. For example, 20% of 85% is $(0.20) \times (0.85) = 0.17$, meaning it's 17% of the original amount.
  • Sum of Percentages: Percentages that apply to the same base amount can be added together. In this problem, the percentages for food, rent, bills, clothing, and savings all apply to the "remaining income", so their percentages ($35\%+20\%+17\%+8\%+20\%$) should add up to 100% of that remaining income, which they do ($80\%+20\%=100\%$).
  • Using Variables: Representing the unknown total income with a variable (like $I$) and setting up an equation based on the given information (like the savings amount) is a standard and reliable way to solve such problems.
Was this answer helpful?

Important Questions from Quant Based Puzzle

  1. There are deers and peacocks in a zoo. By counting heads they are 80. The number of their legs is 200. How many peacocks are there?
  2. A certain number of horses and an equal number of men are going somewhere. Half of the owners are on their horses' back while the remaining ones are walking along leading their horses. If the number of legs walking on the ground is 70, how many horses are there?
  3. A, B, C, D and E play a game of cards. A says to B, "If you give me three cards, you will have as many as E has and if I give you three cards, you will have as many as D has". A and B together have 10 cards more than what D and E together have. If B has two cards more than what C has and the total number of cards be 133, how many cards does B have?
  4. A player holds 13 cards of four suits, of which seven are black and six are red. There are twice as many diamonds as spades and twice as many hearts as diamonds. How many clubs does he hold?
  5. There are fourteen teams playing in a tournament. If every team plays one match with every other team, how many matches will be played in the tournament?

Need Expert Advice?

Start Your Preparation with Prepp Mobile App

Download the app from Google Play & App Store
Download the app from Google Play & App Store
Prepp Mobile App