Answer:
$3600
Step-by-step explanation:
Given:
Total income T = $18,000
Fraction of income spent on house rent f1 = 1/5
Fraction of income spent on other expenditures f2 = 3/5
Fraction of income saved is;
f = 1 - (1/5+3/5) = 1 - 4/5
f = 1/5
The Amount he save is A;
A = fraction saved × total amount = f × T
Substituting the values
A = 1/5 × $18,000
A = $3,600
The Amount he save is $3,600
Answer: Varun saves 3,600 every month
Step-by-step explanation: Varun's income in the first instance is fixed at 18000, and out of this amount he spends 1/5 on house rent. We shall now determine the amount represented by 1/5 as follows;
Total income = 18000
House rent = 1/5
Rent expense = 1/5 of 18000
Rent expense = 1/5 * 18000
Rent expense = 3600
he also spends 3/5 on other expenditure
Other expenditure = 3/5 of 18000
Other expenditure = 3/5 * 18000
Other expenditure = (3 * 18000)/5
Other expenditure = 54000/5
Other expenditure = 10800
His expenses therefore have been derived as
Total expenditure = 3600 + 10800
Total expenditure = 14400
His savings per month therefore is derived as;
Total income - total expenditure = savings
18000 - 14400 = savings
3600 = savings
Therefore, Varun saves 3,600 every month
