CAT 2022 Slot 2 QA Question 6: Manu earns ₹4000 per month and wants to save an average of ₹550 per month in a year. In the first nine months, his monthly expense was ₹3500, and he foresees that, tenth month onward, his monthly expe

Question

Manu earns ₹4000 per month and wants to save an average of ₹550 per month in a year. In the first nine months, his monthly expense was ₹3500, and he foresees that, tenth month onward, his monthly expe

Accepted Answer

The total savings target for the year is:

$12 	imes 550 = 6600$

In each of the first nine months, Manu saves $4000 - 3500 = 500$.

$	ext{Savings in first 9 months} = 9 	imes 500 = 4500$
$	ext{Required savings in last 3 months} = 6600 - 4500 = 2100$
$	ext{Required savings per month} = 2100 \di