Quote:
Originally Posted by A New Beginning
If the income is 24000 how can the expenditure be 1,45,000 (unless IMF is very lenient on this particular family)  . If 24000 is the income then the percentages apply as they are. And the only thing the examiner is checking here, in my opinion, is the application of .16 x 3/8 x (whatever is the value regardless). So shouldn't worry much on this part and simply solve it on the face value of 24,000 income, which is expressly mentioned. |
Exactly my pont. And hence the source of my confusion. If monthly expenditure is 145000, how come the income can be 24000? Expenditure is 145000,we know that for sure. We have calculated that in part C. P.s you can also varify the figure 145000 by this pie chart. Which the statement says represents monthly expenditure.
8% of 145000 gives 11600= utilities
10% of 145000 gives 14500=local tax
26% of 145000 gives 37700= rent
15% of 145000 gives 21750= childcare
10% of 145000 gives 14500= travel
16%of 145000 gives 23200= other
15% of 145000 gives 217500= food
Add them all up; you get 145000, and your expenditure is varified as per this pie chart. So, how they gave the figure of 24000 for monthly income? Which doesn't fit anywhere in this pie chart. That's why i doubted that this figure could be misleading.
If i had been solving it in the exam hall, i also would have done it out of 24000. But that makes no sense. As in part D, they are asking you to calculate savings portion from 'other'. 'other' s value you have to get from the pie chart (16%). Which refers 16% of expenditure. But all of a sudden in part D. You are calculating 16% of income instead of expenditure.