Question

2) Father earns Rs 21,600 in a month. He spends 15% of his earning on the education of his children and 25% on food. a (i) Find his total expense on education and food. (ii) How much does he save in a month ? (iii) How much does he save in 1 year ? (iv) If he spends 80% of his annual saving to buy a piece of land, What is the cost of the land ?​

Answer 1

a) i) Rs 8,640

ii) Rs 12,960

iii) Rs 155,520

iv) Rs 124,416

Explanation:

Salary = Rs 21,600 per month

a) i)

Percentage of salary spent on education = 15%

⇒ 15% of 21600 = 0.15 x 21600 = 3240

Percentage of salary spent on food = 25%

⇒ 25% of 21600 = 0.25 x 21600 = 5400

Therefore, total monthly expenses = 3240 + 5400 = 8640

ii) Monthly savings = monthly salary - monthly expenses

= 21600 - 8640

= 12960

iii) 1 year savings = monthly savings x 12

= 12960 x 12

= 155520

iv) 80% of savings = 0.8 x 155520 = 124416