Question Details

The total monthly salary of Liam is $60,000. He spends y% of his monthly salary on housing rent, 25% of the remaining monthly salary on food and utilities, and half of the remaining monthly salary on stock investments. If Liam saves $18,000 at the end of the month, then the amount spent on stock investments is what percent more than the amount spent on housing rent?

Options

A

40%

B

50%

C

80%

D

60%

E

75%

Show Answer

Correct Answer :

Option B

50%

260%

Solution :

The correct option is 50%.

Step 1: Understand the given values
Total monthly salary of Liam = $60,000
Savings at the end of the month = $18,000

Step 2: Determine the salary remaining after housing rent
Let R be the remaining monthly salary after spending y% on housing rent.

Liam spends 25% of this remaining salary R on food and utilities:
Amount spent on food and utilities=0.25R=14R
Remaining salary after food and utilities = R-14R=34R

Step 3: Calculate stock investments and savings
Liam spends half of the remaining salary on stock investments:
Amount spent on stock investments=12×34R=38R

The remaining amount after stock investments represents Liam's monthly savings:
Savings=34R-38R=38R

We are given that the total savings equal $18,000. Equating the two expressions:
38R=18000

Solving for R:
R=18000×83
R=6000×8=48000

So, the remaining salary after paying for housing rent is $48,000.

Step 4: Calculate the amounts spent on housing rent and stock investments
Since total monthly salary is $60,000 and the salary remaining after housing rent is $48,000:
Amount spent on housing rent=60000-48000=12000

The amount spent on stock investments is:
Amount spent on stock investments=38×48000=18000

Step 5: Calculate how much percent more stock investment is than housing rent
We compare the stock investment ($18,000) to the housing rent ($12,000):
Percentage More=Stock Investments-Housing RentHousing Rent×100
Percentage More=18000-1200012000×100
Percentage More=600012000×100=50%

Therefore, the amount spent on stock investments is 50% more than the amount spent on housing rent.

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