Question

Mohit saves \[7\% \] of his income. If his annual savings in the year was Rs. \[28000\] , what is his annual income?

Answer 1

Hint: In the given question, we have to find the annual income based on data available about savings. This is a simple percentage sum we can solve by using the formula, \[p(\% ) = \dfrac{x}{y} \times 100\] . We will assume his total income as \[y\] since it is the missing figure.

Complete step by step solution:
Let us understand the concept of percent first.
Calculating percentages is a simple mathematical procedure. If you need to find a ratio or a component of a quantity as a proportion of another quantity, you can express it as a percentage.
To find out the percent of a given number, we can use the following formula:
 \[p(\% ) = \dfrac{x}{y} \times 100\]
Where:
 \[x\] = Number for which percentage is to be found out;
 \[y\] = Total or whole number of given data
We can solve the sum as follows:
We are given that his annual savings is Rs. \[28000\] which is \[7\% \] of his income. Let his total income be \[y\] .
Applying the formula, we will get,
 \[7 = \dfrac{{28000}}{y} \times 100\]
Cross-multiplying, we get,
 \[y = \dfrac{{2800000}}{7}\]
 \[y = 4,00,000\]
Hence, the total annual income of Mohit will be Rs. \[4,00,000\] .
So, the correct answer is “ Rs. \[4,00,000\] ”.

Note: In the given sum, we were already given the percentage and had to do a reverse calculation to arrive at the required answer. One should read the question carefully to understand what is given and what is missing and then apply the formula accordingly.
One point is to be noted that \[7\% \] and \[ \times 100\] cannot be used simultaneously. We can only use one at a time to do correct calculation i.e. we can write \[7 = \dfrac{{28000}}{y} \times 100\] or \[7\% = \dfrac{{28000}}{y}\] . This is because the percentage already considers \[ \times 100\] in its calculation.