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 expenditure on food and entertainment?

• A. Rs. 2000
• B. Rs. 2500
• C. Rs. 2160
• D. Rs. 2200

Hint:

Add the food and entertainment percentages first, then apply the combined percentage to the net income.

Answer 1

The Correct Option is D

Step 1: Understanding the Question.
We need the combined amount spent on food and entertainment in a month.

Step 2: Key Formula or Approach.
Find the net monthly income first, then add the food percentage and the entertainment percentage of that net income.

Step 3: Detailed Explanation.
As before, the gross income is \[ 5000 + 0.20 \times 5000 = 6000 \]
and after the PF deduction of \[ 0.10 \times 5000 = 500 \]
the net income is \[ 6000 - 500 = 5500 \]
Food takes up 28 percent of the net income: \[ 0.28 \times 5500 = 1540 \]
Entertainment takes up 12 percent of the net income: \[ 0.12 \times 5500 = 660 \]
Adding these two heads together: \[ 1540 + 660 = 2200 \]

Step 4: Final Answer.
The family spends Rs. 2,200 on food and entertainment together, so option (d) is correct. \[ \boxed{Rs.\ 2200} \]