Monthly Earnings and Savings Target

CAT 2022 Slot 2 · QA · Easy · Arithmetic

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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

  1. A.

    4200

  2. B.

    4400

  3. C.

    4300

  4. D.

    4350

Answer

B

Explanation

Total target savings for 12 months = 12×550=660012 \times 550 = 6600. In first 9 months, monthly earning = 4000, monthly expense = 3500. Monthly savings in first 9 months = 4000−3500=5004000 - 3500 = 500. Total savings in first 9 months = 9×500=45009 \times 500 = 4500. Remaining savings needed in last 3 months = 6600−4500=21006600 - 4500 = 2100. Savings needed per month in last 3 months = 21003=700\frac{2100}{3} = 700. Since monthly expense in last 3 months = 3700, monthly earnings needed = 3700+700=44003700 + 700 = 4400.

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