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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

CAT · 2022 · Quant Slot 2
Question:
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

Options

(1) 4200
(2) 4400
(3) 4300
(4) 4350
Answer: (2) 4400

Explanation:
Total savings required in 1 year = 550 × 12 = ₹6600. First 9 months: Earning each month = ₹4000 Expense each month = ₹3500 Saving each month = 4000 − 3500 = ₹500 Total saving in 9 months = 9 × 500 = ₹4500 Remaining saving needed for last 3 months = 6600 − 4500 = ₹2100 So saving required per month (months 10–12) = 2100 ÷ 3 = ₹700 From month 10 onward expense = ₹3700, so required earning = expense + saving = 3700 + 700 = ₹4400. Answer: (2) 4400

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