Question Details

A spends 30% of his monthly income on rent, 25% of the remaining on groceries, and the remaining amount on entertainment and savings in the ratio 2:3, respectively. What percentage of his income is spent on entertainment?

Options

A

19%

B

21%

C

30%

D

25%

E

18%

Show Answer

Correct Answer :

Option B

21%

21%

Solution :

The correct option is 21%.

Let's break down the solution step-by-step to find the percentage of A's monthly income spent on entertainment:

Step 1: Assume a total monthly income.
To make calculations straightforward, let A's total monthly income be I=100 units.

Step 2: Calculate the expenditure on rent and find the remaining amount.
A spends 30% of his monthly income on rent.
Rent expenditure = 30% of 100=30 units.
Remaining income after rent = 100-30=70 units.

Step 3: Calculate the expenditure on groceries.
A spends 25% of the remaining income on groceries.
Groceries expenditure = 25% of 70=25100×70=17.5 units.
Remaining income after groceries = 70-17.5=52.5 units.

Step 4: Divide the remaining amount between entertainment and savings.
The remaining amount (52.5 units) is divided between entertainment and savings in the ratio 2:3.
Total parts in the ratio = 2+3=5 parts.
The fraction of the remaining amount spent on entertainment is 25.

Step 5: Calculate the amount spent on entertainment.
Entertainment expenditure = 25×52.5 units.
Entertainment expenditure = 2×10.5=21 units.

Step 6: Express the entertainment expenditure as a percentage of the total income.
Since the total monthly income was assumed to be 100 units, the 21 units spent on entertainment represents:
Percentage of income spent on entertainment = 21100×100%=21%.

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