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
According to the Travel Cost Method (TCM) in economic valuation, which of the following is typically included in the calculation of "Travel Cost"?
In classical linear regression model if we add in 90 in X and Y observation and re-estimate the regression model then slope coefficient
If the sum of the product of the deviation of X and Y from their means is zero, the correlation coefficient between X and Y is:
Which of the following statements is NOT correct in the context of quantity theory of money?
The credit manager at a Departmental store collects data on 100 of her customers. Of the 60 men, 40 have credit cards (C). Of the 40 women, 30...
A Type I error occurs when we:
What is the supply curve of a firm in Perfect Competition?
You have a budget of Rs. 4000 and would like to purchase LPG cylinders from a local seller who charges Rs. 50 per cylinder. The seller has a subsidy sch...
According to the Taylor principle, for inflation to be stable, the central bank must respond to an
increase in inflation with...
Excess Capacity is not found in?
