Question

Mr. Virmani Saves 12% of his salary. If he receives Rs 15900 per month as salary,find the monthly expenditure.

Answer 1

Hint: we consider the monthly salary 100%. It is given that he saves 12% of his salary. Then we will find out the expenditure of this monthly salary.

Complete step-by-step answer:
Let 100% be the monthly salary of Virmani.
Given that 12% is the saving of his monthly salary. Now if he gives of monthly salary therefore, Expenditure= Income - Saving
Expenditure =100%-12%=88%
Therefore, Expenditure of Virmani is 88%.
Now, if 100%=15900 Rs
Then, 1%=15900/100=159Rs
Multiply by 88 on both sides:
88%=159*88=13392Rs
Therefore expenditure of Virmani is Rs 13,992.

Additional Information: Income, expenditure and savings are interrelated. The expenditure incurred on the various needs is vital to enhance the health status and welfare of households. On the other hand, savings are essential for future use. Mathematically they can be expressed as INCOME = SAVINGS + EXPENDITURE. These questions most commonly came in the ratio chapter. Just by using the basic concept of Income, saving and expenditure we will find out the required formula. We are also using it in our daily life. Suppose you go to the market to buy milk, you give a shopkeeper 100 Rs from which you will get 40Rs back then you spend Rs 60. In this scenario you can also see that 100Rs is income,40Rs is saving and Rs 60 is expenditure.

Note: The above question can be solved using another method. Find the 12% of 15900 which are savings. Then using the formula of Income = expenditure + savings we will find out the savings as income is Rs 15900 and savings are 12% of 15900.