Model 5 Income & Expenditure Practice Questions Answers Test With Solutions & More Shortcuts

Question : 1 [SSC DEO 2009]

The salary of a person is decreased by 25% and then the decreased salary is increased by 25%. His new salary in comparison with his original salary is

a) 6.25% less

b) 6.25% more

c) the same

d) 0.625% less

Answer: (a)

Effective change

= $(–25 + 25 - {25 × 25}/100)%$ = – 6.25%

The negative sign shows decrease.

Using Rule 3,

If an amount is increased by a% and then it is reduced by a% again, then percentage change will be a decrease of $a^2/100%$

Percentage decrease = $a^2/100 % = (25)^2/100$

= $625/100$ = 6.25%

Question : 2

What per cent decrease in salaries would exactly cancel out the 20 per cent increase?

a) 33$1/3$%

b) 16$2/3$%

c) 20%

d) 18%

Answer: (b)

Using Rule 8,

If the income of a man is A% more than another man, then income of another man is less in comparison to the 1st man by

$(A/(100 + A)× 100)%$

Simple method

Required answer = $(20/{100 + 20} × 100)$%

= $(20/120 × 100)% = 50/3% = 16{2}/3%$

Question : 3 [SSC CGL Prelim 2003]

Radha spends 40% of her salary on food, 20% on house rent, 10% on entertainment and 10% on conveyance. If her savings at the end of a month are Rs.1500, then her salary per month (in Rs.) is

a) Rs.6000

b) Rs.7500

c) Rs.8000

d) Rs.10000

Answer: (b)

Radha's total percentage expenditure

= (40 + 20 + 10 + 10)% = 80%

Percentage savings =100 – 80 = 20%

Now, 20% of her total salary = 1500

Her total salary = ${1500 ×100}/20$ = Rs.7500

Using Rule 20,

Here, Monthly income = $100/{100 - (40 + 20 +10 +10)} ×1500$

= $150000/{100 – 80} = 150000/20$ =Rs.7500

Question : 4 [SSC HSL DEO & LDC 2010]

X's income is 20% more than that of Y. What per cent is Y's income less than X ?

a) 83$2/3$%

b) 16$2/3$%

c) 83$1/3$%

d) 16$1/3$%

Answer: (b)

Using Rule 8,

Required percentage = $20/{100 + 20} × 100$

= $50/3 =16{2}/3%$

Question : 5 [SSC SO 2003]

If the total monthly income of 16 persons is Rs.80,800 and the income of one of them is 120% of the average income, then his income is

a) Rs.6,160

b) Rs.6,060

c) Rs.5,050

d) Rs.6,600

Answer: (b)

Let the required income be Rs.x Average monthly income

= Rs.$(80800/16)$ = Rs.5050

x = 120% of 5050

= Rs.$(120/100 × 5050)$ = Rs.6060

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