Question
'T' spends 20% of his monthly income on education, 35%
on medical expenses, and 15% of the remaining amount on leisure activities. He saves the rest in a bank deposit that gives simple interest at a rate of 7% per annum. Find the amount 'T' will get at the end of the year if his spending on leisure activities is Rs. 750 per month.Solution
Let monthly income = Rs. 100b Spending on education = 100b × 0.2 = Rs. 20b Spending on medical expenses = 100b × 0.35 = Rs. 35b Spending on leisure activities = (100b – 20b – 35b) × 0.15 = Rs. 6.75b Savings = 100b – 20b – 35b – 6.75b = Rs. 38.25b Now, 6.75b = 750 Or, 38.25b = 4250 Total interest paid by the bank deposit: = P × r × t = 4250 × 7 × 1/100 = Rs. 297.50 Amount = 4250 + 297.50 = Rs. 4547.50
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