Question
'Q' spends 25% of his monthly income on rent, 40% on
groceries, and 15% of the remaining amount on entertainment. He saves the rest of the money in a fixed deposit that gives simple interest at a rate of 8% per annum. Find the amount 'Q' will get at the end of the year if his spending on entertainment is Rs. 900 per month.Solution
Let monthly income = Rs. 100y Spending on rent = 100y × 0.25 = Rs. 25y Spending on groceries = 100y × 0.4 = Rs. 40y Spending on entertainment = (100y – 25y – 40y) × 0.15 = Rs. 5.25y Savings = 100y – 25y – 40y – 5.25y = Rs. 29.75y Now, 5.25y = 900 Or, 29.75y = 5100 Total interest paid by the fixed deposit: = P × r × t = 5100 × 8 × 1/100 = Rs. 408 Amount = 5100 + 408 = Rs. 5508
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