Question

Varuns monthly income is 18000 he spends 1/5 of his income for house rent and 3/5 of his income on other expenditure how much does he save every month

Answer 1

Answer: Varun saves 3,600 every month

Step-by-step explanation: Varun's income in the first instance is fixed at 18000, and out of this amount he spends 1/5 on house rent. We shall now determine the amount represented by 1/5 as follows;

Total income = 18000

House rent = 1/5

Rent expense = 1/5 of 18000

Rent expense = 1/5 * 18000

Rent expense = 3600

he also spends 3/5 on other expenditure

Other expenditure = 3/5 of 18000

Other expenditure = 3/5 * 18000

Other expenditure = (3 * 18000)/5

Other expenditure = 54000/5

Other expenditure = 10800

His expenses therefore have been derived as

Total expenditure = 3600 + 10800

Total expenditure = 14400

His savings per month therefore is derived as;

Total income - total expenditure = savings

18000 - 14400 = savings

3600 = savings

Therefore, Varun saves 3,600 every month

Answer 2

$3600

Explanation:

Given:

Total income T = $18,000

Fraction of income spent on house rent f1 = 1/5

Fraction of income spent on other expenditures f2 = 3/5

Fraction of income saved is;

f = 1 - (1/5+3/5) = 1 - 4/5

f = 1/5

The Amount he save is A;

A = fraction saved × total amount = f × T

Substituting the values

A = 1/5 × $18,000

A = $3,600

The Amount he save is $3,600