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    Question

    Raman allocates his income in the following manner: 20%

    is spent on food. After food expenses, he uses 25% of the balance on rent. He spends one-fourth of the remaining amount on transport. Following these expenses, he spends 20% of what's left on miscellaneous items. He saves the remaining sum, which amounts to Rs. 36,000. Calculate his total income. 
    A Rs. 90,000 Correct Answer Incorrect Answer
    B Rs. 1,00,000 Correct Answer Incorrect Answer
    C Rs. 1,20,000 Correct Answer Incorrect Answer
    D Rs. 80,000 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Let the income of Raman be Rs. '100q'.
    Money spent on food = 0.20 × 100q = Rs. '20q'
    Remaining income = 100q – 20q = Rs. '80q' Money spent on rent = 0.25 × 80q = Rs. '20q'
    Remaining income = 80q – 20q = Rs. '60q' Money spent on transport = (1/4) × 60q = Rs. '15q'
    Remaining income = 60q – 15q = Rs. '45q' Money spent on miscellaneous = 0.20 × 45q = Rs. '9q'
    Savings = 45q – 9q = Rs. '36q' So, 36q = 36,000
    Or, q = 1,000
    Therefore, income of Raman = 1,000 × 100 = Rs. 1,00,000

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