A person spends 25% of his monthly salary on house rent and two-third of the remaining on food and transport. If he saves ₹5,000 per month, then his monthly salary (in ₹) is:

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  1. 50,000
  2. 20,000
  3. 45,000
  4. 42,000

Answer (Detailed Solution Below)

Option 2 : 20,000
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Detailed Solution

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Given:

Percentage spent on house rent = 25%

Fraction of remaining spent on food and transport = 2/3

Monthly savings = ₹5000

Formula Used:

Remaining amount = Total amount - Amount spent

Savings = Total Salary - (Amount spent on house rent + Amount spent on food and transport)

Calculation:

Let the monthly salary be ₹x.

Amount spent on house rent = 25% of x = 0.25x = x/4

Remaining amount after paying house rent = x - x/4 = 3x/4

Amount spent on food and transport = (2/3) of the remaining amount = (2/3) × (3x/4) = 2x/4 = x/2

Total amount spent = Amount spent on house rent + Amount spent on food and transport = x/4 + x/2 = x/4 + 2x/4 = 3x/4

Savings = Total Salary - Total amount spent

⇒ 5000 = x - 3x/4

⇒ 5000 = (4x - 3x) / 4

⇒ 5000 = x / 4

⇒ x = 5000 × 4

⇒ x = 20000

His monthly salary is ₹20,000.

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