Question

Directions for questions 35 to 40: Study the following details about a family's monthly income and expenditure and answer the question that follows.

Income	Amount / Rate
Basic salary	Rs. 5,000
Petrol allowance	20% of basic salary
PF deduction	10% of basic salary

Expenditure	Share of net income
Food	28%
House rent	22%
Entertainment	12%
Children's Education	25%
Other expenses	13%

What is the house rent?

• A. Rs. 1188
• B. Rs. 1210
• C. Rs. 1320
• D. Rs. 1420

Hint:

Work out the family's net income after the PF deduction, then take 22 percent of it.

Answer 1

The Correct Option is B

Step 1: Understanding the Question.
We are given a family's income details and a break-up of how the family spends its money. We need to find the actual house rent paid.

Step 2: Key Formula or Approach.
First find the family's usable (net) monthly income, then apply the given percentage for house rent to that net income.

Step 3: Detailed Explanation.
The basic salary is Rs. 5,000.
The petrol allowance is 20 percent of the basic salary: \[ 0.20 \times 5000 = 1000 \]
So the gross monthly income is \[ 5000 + 1000 = 6000 \]
The PF deduction is 10 percent of the basic salary: \[ 0.10 \times 5000 = 500 \]
This is removed before the money reaches the family, so the net income available for spending is \[ 6000 - 500 = 5500 \]
The house rent is 22 percent of this net income: \[ 0.22 \times 5500 = 1210 \]

Step 4: Final Answer.
The house rent is Rs. 1,210, so option (b) is correct. \[ \boxed{Rs.\ 1210} \]