A man’s average income for the first 3 months is 12% of his total income. For the next 6 months the average monthly income was Rs. 25,400. His total income for the remaining months is Rs. 60,000.16 more than during first 3 months. If the person saved Rs. 64,500 in a year, find his expenditure during the year?

Solution

Let the person’s annual income be Rs. x Average income for the first 3 months = 12% of x = 0.12x  Total income for the first 3 months = 3 × 0.12x = 0.36x Total income for the next 6 months = 6 × 25,400 = Rs. 1,52,400 Total income for the remaining months = Rs. (0.36x + 60,000.16) Now, 0.36x + 152400 + 0.36x + 60000.16 = x Or 212400.16 = x - 0.72x  212400.16 = 0.28x Or x = 7,58,572 Given that his annual saving is Rs. 64,500 ∴His expenditure =7,58,572 – 64,500 = Rs. 6,94,072