Mr. Sarang invests 6% of his monthly salary, i.e. Rs 2,100, on insurance…

2024

Mr. Sarang invests 6% of his monthly salary, i.e. Rs 2,100, on insurance policies. Also he invests 8% of his monthly salary on family mediclaim policies and another 9% of his salary on NSCs. What is the total annual amount invested by Mr. Sarang?

  1. A.

    Rs. 11,400

  2. B.

    Rs 96,600

  3. C.

    Rs. 8,050

  4. D.

    Rs 9,500

Attempted by 10 students.

Show answer & explanation

Correct answer: B

Concept: When a percentage of an unknown quantity is given as a fixed amount, the quantity's base value is found by scaling up from the given percentage (base = given amount ÷ given percentage × 100). Once the base is known, any other percentage — or a sum of several percentages — of the same base can be computed directly, and a monthly figure is converted to an annual one by multiplying by the 12 months in a year.

  1. 6% of Mr. Sarang's monthly salary equals Rs 2,100, so 1% of his salary equals 2,100 ÷ 6 = Rs 350.

  2. His total monthly investment percentage across all three schemes is 6% + 8% + 9% = 23% of his salary.

  3. The total monthly investment is therefore 23 × Rs 350 = Rs 8,050.

  4. Since the question asks for the ANNUAL amount invested, this monthly figure is multiplied by the 12 months in a year: 8,050 × 12 = Rs 96,600.

Cross-check: Compute each scheme separately from the per-percent value — insurance = 6 × 350 = Rs 2,100 (matches the given data), mediclaim = 8 × 350 = Rs 2,800, and NSCs = 9 × 350 = Rs 3,150. Their monthly sum is 2,100 + 2,800 + 3,150 = Rs 8,050, and 8,050 × 12 = Rs 96,600 — confirming the annual investment of Rs 96,600.

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