A person spends 80% of his income and saves ₹2000. What is his income?
- (a)₹8000
- (b)₹9000
- (c)₹10,000
- (d)₹7500
Answer
Why
Correct — C.
Rule: savings % = 100% − spending %.
He spends 80%, so he saves 100% − 80% = 20%.
20% of income = ₹2000
Income = 2000 × 100 ⁄ 20
= 2000 × 5 = ₹10,000 → option (c).
Why the others are wrong
- (a)₹8000 — ₹8000 is what he spends, 80% of ₹10,000. As an income it fails the check: 20% of ₹8000 saves only ₹1600.
- (b)₹9000 — 20% of ₹9000 is ₹1800, short of the ₹2000 he saves. The income must be 2000 ÷ 0.2 = ₹10,000.
- (d)₹7500 — 20% of ₹7500 is ₹1500. ₹2000 is a fifth of the income, so the income is 5 × 2000 = ₹10,000.
Concept
Income splits into what is spent and what is saved, so the two percentages add to 100%. Turn the stated amount into its own percentage and scale up.
Here savings are 20%, which is one fifth, so the income is 5 × ₹2000. Converting percentages to fractions (20% = 1⁄5, 25% = 1⁄4) turns these into one-line sums.
Key facts
- Savings % = 100% − expenditure %.
- 20% = 1⁄5, so an amount that is 20% of the income is one fifth of it.
- Here expenditure is ₹8000 and savings ₹2000, together ₹10,000.
Study next
Common traps
- Taking the expenditure, ₹8000, as the income.
- Dividing ₹2000 by 0.8 instead of 0.2, working from the spending share rather than the saving share.
The 80% spending set-up comes back in harder form at 9 Sep 2024, 12:30, Quant Q.15, where income rises 20% and expenditure 10%, so savings rise 60%.
At 21 Sep 2025, 09:00, Quant Q.13 income rises 25% with expenditure unchanged, so savings rise 125%.
Related PYQs
No directly related past PYQ was found.