CAT 2022 Question Paper (Slot 2) - Quant Question 4

Question 4

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 expense will increase to ₹3700. In order to meet his yearly savings target, his monthly earnings, in rupees, from the tenth month onward should be


Savings target in a year = 550*12 = Rs 6600

Saving in first 9 months = 9(4000-3500) = Rs 4500

Saving for remaining 3 months should be 6600-4500, i.e. Rs 2100

Savings for each month in last 3 months = $$\frac{2100}{3}$$ = Rs 700

It is given, monthly expenses in last 3 months = Rs 3700

This implies, his monthly earnings from 10th month should be 3700+700, i.e. Rs 4400

The answer is option A.

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