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%

After PF deduction and house rent, what is left for expenditure?

• A. Rs. 4290
• B. Rs. 4212
• C. Rs. 4080
• D. Rs. 3900

Hint:

Subtract the PF deduction and then the house rent from the gross income, in that order.

Answer 1

The Correct Option is A

Step 1: Understanding the Question.
We need to find how much money is left for expenditure after only the PF deduction and the house rent have been paid out of the gross income.

Step 2: Key Formula or Approach.
Start from the gross income, remove the PF deduction, then remove the house rent, and whatever remains is available for the rest of the spending.

Step 3: Detailed Explanation.
The gross income is \[ 5000 + 0.20 \times 5000 = 6000 \]
The PF deduction is \[ 0.10 \times 5000 = 500 \]
so after PF the family has \[ 6000 - 500 = 5500 \]
The house rent, as found earlier, is 22 percent of this net income: \[ 0.22 \times 5500 = 1210 \]
After paying the house rent, the amount left is \[ 5500 - 1210 = 4290 \]

Step 4: Final Answer.
After PF and house rent, Rs. 4,290 is left for the remaining expenditure, so option (a) is correct. \[ \boxed{Rs.\ 4290} \]