Out of her total income, Neelam spends 20% on house rent and 70% of the rest on household expenditure. If she saves Rs. 3600, what is her total income?

Options

A. Rs. 15000
B. Rs. 10500
C. Rs. 10050
D. Rs. 10000

Answer

To solve the problem step by step, let's break it down:

1. **Define Total Income**:
Let Neelam's total income be represented as \( I \).

2. **Calculate House Rent**:
Neelam spends 20% of her total income on house rent.
\[ \text{House Rent} = 0.20 \times I \]

3. **Calculate Remaining Income After Rent**:
After paying the house rent, the remaining income is:
\[ \text{Remaining Income} = I - \text{House Rent} = I - 0.20I = 0.80I \]

4. **Calculate Household Expenditure**:
Neelam spends 70% of the remaining income on household expenditure.
\[ \text{Household Expenditure} = 0.70 \times \text{Remaining Income} = 0.70 \times 0.80I = 0.56I \]

5. **Calculate Total Expenditure**:
The total expenditure (house rent + household expenditure) can be calculated as:
\[ \text{Total Expenditure} = \text{House Rent} + \text{Household Expenditure} = 0.20I + 0.56I = 0.76I \]

6. **Calculate Savings**:
The savings can be calculated by subtracting the total expenditure from the total income:
\[ \text{Savings} = I - \text{Total Expenditure} = I - 0.76I = 0.24I \]

7. **Set Up the Equation for Savings**:
We know that Neelam saves Rs. 3600, so we can set up the equation:
\[ 0.24I = 3600 \]

8. **Solve for Total Income**:
To find \( I \), divide both sides by 0.24:
\[ I = \frac{3600}{0.24} \]
\[ I = 15000 \]

Thus, Neelam's total income is **Rs. 15,000**.