New NABARD Workshop - Last 4 year trend. March 5 at 5 PM. Register here

    Question

    Anchal allocates 20% of his monthly salary to

    transportation, dedicates 50% to shopping, and invests 20% of the remaining balance in food expenses. The remaining amount is saved in mutual funds, yielding a simple interest at a rate of 10% per annum. Determine the total amount Anchal will possess at the end of the year, given that he spends Rs. 1200 per month on food.
    A Rs 60250 Correct Answer Incorrect Answer
    B Rs 60000 Correct Answer Incorrect Answer
    C Rs 65720 Correct Answer Incorrect Answer
    D Rs 60720 Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    Solution

    ATQ, Let, monthly Salary = Rs. 100a Spending on Transportation = 100a × 0.2 = Rs. 20a Spending on Shopping  = 100a × 0.5 = Rs. 50a Spending on Food = (100a – 20a – 50a) × 0.2 = Rs. 6a Savings in Mutual funds = 100a – 50a – 20a – 6a = Rs. 24x Now, 6a = 1200 Or, 24a = 4800 Total interest paid by recurring scheme = P. r. n (n + 1)/(2 × 12 × 100) = 4800 × 12 × (12 + 1) × 10/(2 × 12 × 100) = Rs. 3120 Amount = 4800 × 12 + 3120 = Rs 60720

    Practice Next

    Relevant for Exams: