The monthly salary of a person is ₹50,000. He spends 40% of his salary on household expenses, 25% on rent, and 15% on transportation, and saves the remaining amount. What is his yearly savings?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 1,20,000
Given:
Monthly salary of a person is ₹50,000
He spends 40% of his salary on household expenses, 25% on rent, and 15% on transportation
Calculations:
Monthly Savings (in %) = 100 - (40 + 25 + 15) = 100 - 80 = 20%
Monthly savings = 20% of 50000 = 10000
Yearly savings = 12 × 10000 = 120000