Question
'S' spends 15% of his monthly income on travel, 45% on
rent, and 10% of the remaining amount on groceries. He saves the rest in an investment scheme that gives simple interest at a rate of 9% per annum. Find the amount 'S' will get at the end of the year if his spending on groceries is Rs. 700 per month.Solution
Let monthly income = Rs. 100a Spending on travel = 100a × 0.15 = Rs. 15a Spending on rent = 100a × 0.45 = Rs. 45a Spending on groceries = (100a – 15a – 45a) × 0.1 = Rs. 4a Savings = 100a – 15a – 45a – 4a = Rs. 36a Now, 4a = 700 Or, 36a = 6300 Total interest paid by the investment scheme: = P × r × t = 6300 × 9 × 1/100 = Rs. 567 Amount = 6300 + 567 = Rs. 6867
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