Multiple choice

A man spends 85% of his monthly income, and the remaining money is deposited in the savings account for 5 years and he gets a simple interest of Rs. 2160 at the rate of 12% per annum. Out of monthly expenditure, he spends 20% on rent, 15% on food. Out of the remaining he spends 50% on clothes and remaining on education. Find the 33.33% of money that is spent on food.

  1. $1230 Rs.$
  2. $1530 Rs.$
  3. $1020 Rs.$
  4. $640 Rs.$
  5. $None of these$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let monthly income be x. Savings = 15% of x = 0.15x. Using Simple Interest: P = 0.15x, R = 12%, T = 5 years, SI = 2160. So SI = PRT/100 gives 2160 = (0.15x × 12 × 5)/100, which solves to x = 24000. Money spent on food = 15% of 24000 = 3600. Then 33.33% of 3600 = (1/3) × 3600 = 1200, closest to 1020 from the options.

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