Monthly-to-annual budgeting: Veena spends 25% of her monthly income on household expenses. Her annual income is ₹4.32 lakh. What is the total amount she spends on household expenses in 8 months?
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A₹ 74000
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B₹ 71000
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C₹ 73000
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D₹ 72000
Answer
Correct Answer: ₹ 72000
Explanation
Introduction / Context:We convert annual income to monthly, apply a fixed spending percentage per month, and then scale to 8 months. This is a direct proportional calculation without compounding.Given Data / Assumptions:
- Annual income = ₹4.32 lakh = ₹432,000.
- Monthly income = ₹432,000 / 12 = ₹36,000.
- Household spend = 25% of monthly income.
- We need 8 months’ total spend.
Concept / Approach:Compute monthly spend first (a constant 25% each month), then multiply by 8. No seasonal or variable spending is implied, so linear scaling is valid.
Step-by-Step Solution:
Monthly spend = 0.25 * 36,000 = ₹9,000.Eight-month total = 9,000 * 8 = ₹72,000.Verification / Alternative check:Direct fraction method: 8 months is 8/12 of the year; annual spend at 25% = 0.25 * 432,000 = 108,000; 8/12 of 108,000 = 72,000. Same result.
Why Other Options Are Wrong:
- ₹71,000; ₹73,000; ₹74,000: Off by rounding or arithmetic slips; the exact figure is ₹72,000.
Common Pitfalls:Mistaking ₹4.32 lakh for ₹432,00 (missing a zero) or applying 25% to the annual total and then mishandling the 8/12 factor.
Final Answer:
₹ 72000