Question Details

COVID-19 pandemic turned life upside-down for many families across the world. Mr. Abhishek was working as a sale executive in a famous Marketing Company. Due to COVID 19 pandemic lockdown and restrictions, Mr. Abhishek was not able to achieve his monthly targets which resulted in the reduction of his salary. So far, he spent his income lavishly without any planning and prior calculations. However, the prevailing situation compelled him to plan his expenditure to adjust his life to the present income. Therefore, he analysed his spendings of last year i.e., 2019, so that he can plan his present year 2020 spendings. Through his brief analysis, he found that in the year 2019, he spent 23 per cent of his income on food, 15 per cent on Housing, and 12 per cent on his child’s education. For his transport, he spent 10 per cent, and for clothing of his family he spent 10 per cent. In the meanwhile, Mr. Abishek also saved 15 per cent of his income in the year 2019, and the remaining 20 per cent of expenditure he kept as other spendings. Answer the following questions to provide deeper insight to Mr. Abhishek


If the total expenditure of the family for the year 2019 was ₹ 56,000, what was the amount saved by the family during the year?

Options

A

₹ 8,400

B

₹ 5,600

C

₹ 6,900

D

₹ 3,067

Show Answer

Correct Answer :

Option A

₹ 8,400

Solution :

The correct option is ₹ 8,400.

Step-by-step Explanation:

From the given data regarding Mr. Abhishek's spendings and savings in the year 2019, we are given the following breakdown of his income:

• Food = 23%
• Housing = 15%
• Child's Education = 12%
• Transport = 10%
• Clothing = 10%
• Savings = 15%
• Other Spendings = 20%

We are asked to calculate the amount saved by the family given that the total expenditure (which is based on the total income allocation) was ₹ 56,000 for the year 2019.

Step 1: Identify the savings percentage
The savings percentage of his total income in 2019 was 15%.

Step 2: Calculate the savings amount
The amount saved is 15% of the total expenditure/income (₹ 56,000).

Amount Saved = 15% of ₹ 56,000

Using the percentage formula:

Amount Saved=15100×56000

Amount Saved=15×560

Amount Saved=8400

Therefore, the amount saved by the family during the year 2019 was ₹ 8,400.

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