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: Recall the value of 1 percent of net income.
The net income is Rs. 5,500, from $5000 \times 1.10$, so 1 percent of it is Rs. 55.

Step 2: Add up every expenditure head except house rent.
Food: $28 \times 55 = 1540$
Entertainment: $12 \times 55 = 660$
Children's education: $25 \times 55 = 1375$
Other expenses: $13 \times 55 = 715$
Adding these four gives \[ 1540 + 660 + 1375 + 715 = 4290 \]

Step 3: Confirm this matches "net income minus house rent".
Since all five heads together make up the whole net income of Rs. 5,500, removing the house rent share of Rs. 1,210 must leave exactly the sum of the other four, which checks out at Rs. 4,290.

Final Answer:
Rs. 4,290 remains for the rest of the expenditure after PF and house rent are paid. \[ \boxed{Rs.\ 4290} \]