Averages , Ratio and Proportion Question 3 - CAT 2022
Manu earns ₹4000 per month and wants to save an average of ₹550 per month in a year. In the first nine months, his monthly expense was ₹3500, and he foresees that, tenth month onward, his monthly expense will increase to ₹3700. In order to meet his yearly savings target, his monthly earnings, in rupees, from the tenth month onward should be:
Step-by-Step Explanation
- Determine the total savings target:
Target savings = ₹550 × 12 months = ₹6600
- Analyze the first 9 months:
Monthly savings = Earnings − Expenses = 4000 − 3500 = ₹500
Savings accumulated in 9 months = 500 × 9 = ₹4500
- Calculate requirements for the remaining 3 months:
Remaining savings needed = 6600 − 4500 = ₹2100
Required savings per month = 2100/3 = ₹700
Foreseen monthly expenses = ₹3700
Required monthly earnings = Expenses + Savings = 3700 + 700 = ₹4400
Correct Option: A
💡 FundaMakers Tip:
Break down annual financial targets into separate time blocks. Finding the total savings deficit (₹2100) before looking at the expense increase ensures your math stays simple and prevents calculation errors.