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
Started 6 months ago by Shashank in
Explanatory Answer
On average, Manu targets saving ₹550 per month.
In the first 9 months, Manu earns ₹4000 per month and spends ₹3500.
So, he ends up saving only ₹450 per month. In other words, he misses his target by ₹50 per month.
So he saves ₹50 ×× 9 = ₹450 less than his target.
In the next 3 months of the year, his expenses are ₹3700 per month. To save ₹550 per month in these three months, his income should be ₹3700 + ₹550 = ₹4250 per month.
But also, he should earn some more to compensate for the ₹450 he was short of in the first 9 months. This ₹450 is earned over a span of 3 months. Or he should earn ₹150 extra each month.
So Manu’s income in the last 3 months = ₹4250 + ₹150 = ₹4400
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