Ram spends 30% of his monthly salary on food, and one-fifth of the remaining on house rent. If Ram saves Rs. 7,000 per month, which is equal to one-third of the balance after spending on food and house rent, then what is his monthly salary?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. Rs. 37,500.
Let Ram's monthly salary = S
Food = 0.3S
Remaining after food = 0.7S
House rent = (1/5) × 0.7S = 0.14S
Balance after rent: 0.7S - 0.14S = 0.56S
(1/3) × 0.56S = 7000
⇒ S = 21000/0.56 = 37500