Question

Manu earns ₹4000 per month and wants to save an average of ₹550 per month in a year. In the first nine months, his monthly expense was ₹3500, and he foresees that, tenth month onward, his monthly expense will increase to ₹3700. In order to meet his yearly savings target, his monthly earnings, in rupees, from the tenth month onward should be

• A. 4200
• B. 4400
• C. 4300
• D. 4350

Answer 1

The Correct Option is B

To determine Manu's required monthly earnings from the tenth month onward, start by calculating the total savings needed for the year. Manu wants to save an average of ₹550 per month. Therefore, his total savings for the year must be:

Annual Savings: 

₹550/month × 12 months = ₹6,600

Next, calculate his savings for the first nine months. His expenses for the first nine months are ₹3,500 per month, from his earnings of ₹4,000 per month. His monthly savings for the first nine months are:

Monthly Savings (First 9 Months):

₹4,000 - ₹3,500 = ₹500

Total savings for the first nine months:

Total Savings (First 9 Months):

₹500/month × 9 months = ₹4,500

Manu's remaining savings to meet his goal are:

Remaining Savings Needed:

₹6,600 - ₹4,500 = ₹2,100

For the next three months (tenth to twelfth month), Manu's expenses increase to ₹3,700 per month. Therefore, his savings per month for these months should be:

Required Savings per Month (Last 3 Months):

₹2,100 / 3 = ₹700

So the required earnings per month (from the tenth month onward) to meet the required savings will be:

Required Monthly Earnings:

(Required Savings per Month + Monthly Expenses) = ₹700 + ₹3,700 = ₹4,400

Therefore, Manu should earn ₹4,400 per month from the tenth month onward to meet his annual savings target.