Sandeep spends 32% of his annual income on food, 20% of the remaining income on travelling, and 35% of the remaining income on clothes, and still saves ₹70,720 per year. What is the annual income (in ₹) of Sandeep?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 2,00,000.
Let the annual income be x ₹
Savings = Total income - (Food expenditure + Travelling expenditure + Clothes expenditure)
Food expenditure = 0.32 × x
Remaining income after food = x - 0.32x = 0.68x
Travelling expenditure = 0.20 × 0.68x = 0.136x
Remaining income after travelling = 0.68x - 0.136x = 0.544x
Clothes expenditure = 0.35 × 0.544x = 0.1904x
Remaining income after clothes = 0.544x - 0.1904x = 0.3536x
Savings = 0.3536x
Given savings = ₹70,720
⇒ 0.3536x = 70,720
⇒ x = 70,720 / 0.3536
⇒ x = 2,00,000