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Rohit spends 5% of his income on insuran...

Rohit spends `5%` of his income on insurance and `2(1)/(2)%` of the remaining paying as tax. Now he is left with `Rs.420` more than `90%` of his income. Find his income.

A

Rs. `16,000`

B

Rs. `18,000`

C

Rs. `24,000`

D

Rs. `19,000`

Text Solution

AI Generated Solution

The correct Answer is:
To find Rohit's income based on the given problem, let's break it down step by step. ### Step 1: Define Rohit's total income Let Rohit's total income be represented as \( I \). ### Step 2: Calculate the amount spent on insurance Rohit spends \( 5\% \) of his income on insurance. Therefore, the amount spent on insurance is: \[ \text{Insurance} = \frac{5}{100} \times I = 0.05I \] ### Step 3: Calculate the remaining income after insurance After spending on insurance, the remaining income is: \[ \text{Remaining Income} = I - 0.05I = 0.95I \] ### Step 4: Calculate the amount spent on tax Rohit spends \( 2.5\% \) (which is \( 2\frac{1}{2}\% \)) of the remaining income on tax. Therefore, the amount spent on tax is: \[ \text{Tax} = \frac{2.5}{100} \times 0.95I = 0.025 \times 0.95I = 0.02375I \] ### Step 5: Calculate the remaining income after tax After spending on tax, the remaining income is: \[ \text{Remaining Income after Tax} = 0.95I - 0.02375I = 0.92625I \] ### Step 6: Set up the equation based on the given condition According to the problem, Rohit is left with \( Rs.420 \) more than \( 90\% \) of his income. Thus, we can express this as: \[ 0.92625I = 0.90I + 420 \] ### Step 7: Simplify the equation Now, let's simplify the equation: \[ 0.92625I - 0.90I = 420 \] \[ 0.02625I = 420 \] ### Step 8: Solve for \( I \) To find \( I \), divide both sides by \( 0.02625 \): \[ I = \frac{420}{0.02625} \] Calculating this gives: \[ I = 16000 \] ### Conclusion Thus, Rohit's total income is \( \text{Rs.} 16000 \). ---
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