Comprehension

Mr. Das is working in a construction company. He has a family, including his wife and a daughter. His total monthly income includes a salary of Rs. 9228/- and a 10% house rent allowance. Due to increasing inflation, he is keeping a home budget that accounts for the income and expenses of the household. Out of his total monthly income, he spends 25% on food expenses, 18% on paying the house-rent, 9% on entertainment, 23% on the education of his child, 13% on medical expenses, and he saves 12% of his total monthly income.
Based on the above information, answer the following questions.

Question: 1

If the expenditure on food and entertainment is increased by 10% due to inflation in prices, what will be the new percentage of savings in the same monthly salary?

Updated On: Dec 1, 2024
  • 0.084
  • 0.086
  • 0.088
  • 0.0875
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The Correct Option is B

Solution and Explanation

Total monthly income: Rs. 9228 + 10% of 9228 = Rs. 9228 + 922.8 = Rs. 10150.8.
Expenditure on food and entertainment is initially 25% + 9% = 34%.
Increasing this by 10% means: New expenditure on food = 20% × 1.1 = 22% ;
New expenditure on entertainment = 9% × 1.1 = 9.9%.
New total expenditure on food and entertainment = 22% + 9.9% = 31.9%.
The total remaining percentage for savings (100% - 37.4% = 18% for house rent + 23% for education + 15% for medical) = 8.6%.
Hence, savings will now be 8.6
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Question: 2

How much total money has he spent on food and entertainment?

Updated On: Dec 1, 2024
  • Rs. 3541/-
  • Rs. 3461/-
  • Rs. 3571/-
  • None of the above
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The Correct Option is B

Solution and Explanation

Total monthly income = Rs. 10150.8.
Total percentage spent on food and entertainment = 25% + 9% = 34%.
Expenditure on food and entertainment = 34% of 10150.8 = Rs. 3461.
Hence, the total expenditure on food and entertainment is Rs. 3461.
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Question: 3

How much money does Mr. Das pay as the house-rent?

Updated On: Dec 1, 2024
  • Rs. 1827/-
  • Rs. 1661/-
  • Rs. 1783/-
  • Rs. 1935/-
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The Correct Option is B

Solution and Explanation

House rent is 18% of total income: 18% of Rs. 10150.8 = Rs. 1661.
Thus, Mr. Das pays Rs. 1661 as house rent.
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Question: 4

If Mr. Das gets 12% annual interest on the savings and he wishes to save Rs. 30,000/- in two years period, how much extra should he save in the next year?

Updated On: Dec 1, 2024
  • Rs. 1200/-
  • Rs. 1300/-
  • Rs. 1400/-
  • There is no need for saving
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The Correct Option is C

Solution and Explanation

Annual savings = 12% of Rs. 10150.8 = Rs. 1218.1.
After two years, Mr. Das wants Rs. 30,000.
Interest = Rs. 1218.1 x 2 years × 12% = Rs. 2923.
Additional savings needed = Rs. 30,000 - Rs. 2923 = Rs. 27,077.
Extra savings in one year = Rs. 27,077/2 = Rs. 1400 (approx).
Hence, Mr. Das should save Rs. 1400 extra.
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Question: 5

Which of the following is true regarding the home budget of Mr. Das?

Updated On: Dec 1, 2024
  • The total amount spent on house-rent, entertainment and education is greater than the total amount spent on food expenses, medical expenses and savings
  • The total amount spent on entertainment, medical expenses and education is equal to the total amount spent on house-rent, food expenses and savings
  • The total amount spent on savings, medical expenses and education is less than the total amount spent on house-rent, food expenses and entertainment
  • None of the above
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The Correct Option is C

Solution and Explanation

Expenditure on house-rent = 18%, entertainment = 9%, education = 23%.
Total expenditure on house-rent, food, and entertainment = 18% + 25% + 9% = 52%.
Expenditure on savings, medical expenses, and education = 12% + 13% + 23% = 48%.
Thus, the total amount spent on savings, medical expenses, and education is less than the total spent on house-rent, food, and entertainment.
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Question: 6

How much money remains for other expenses after the house-rent and savings?

Updated On: Dec 1, 2024
  • Rs. 7061/-
  • Rs. 7601/-
  • Rs. 7106/-
  • Rs. 7016/-
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The Correct Option is A

Solution and Explanation

Total monthly income = Rs. 10150.8.
House rent = Rs. 1661.
Savings = 12% of Rs. 10150.8 = Rs. 1218.1.
Remaining money = Rs. 10150.8 - (Rs. 1661 + Rs. 1218.1) = Rs. 7061.
Thus, Rs. 7061 remains for other expenses.
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