Question 26
MediumOriginal questionThe Nair family's monthly budget (total monthly income ₹60,000):
| Item | Amount (₹) |
|---|---|
| Rent | 15,000 |
| Food | 12,000 |
| Education | 9,000 |
| Transport | 4,800 |
| Other | 7,200 |
| Savings | 12,000 |
Using the Nair family's budget table: next month, food spending rises by 20% and transport spending rises by 25%. Income and every other item stay the same, and savings absorb the extra cost. By what percentage do the family's savings fall?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
Extra food cost = 20% of ₹12,000 = ₹2,400.
Extra transport cost = 25% of ₹4,800 = ₹1,200.
Savings fall by ₹3,600, from ₹12,000 to ₹8,400.
Percentage fall = .
Worth noting
The fall is measured on the old savings (₹12,000). Dividing by the income gives 6%; adding the two rates gives 45%.
- Concept
- Percentage change in a quantity that absorbs other changes
- Typical timeTypical
- 75 s
- Your timeYours
- —
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