A man gets annual pay of Rs 9.0 lakh. His expenditure and savings are in the ratio 5 : 1. What is his average savings per month?

Given:

Annual pay = Rs 9.0 lakh

Expenditure and savings ratio = 5 : 1

Formula Used:

Total parts = Expenditure parts + Savings parts

Savings = (Annual pay / Total parts) * Savings parts

Calculations:

According to Question:

Total parts = 5 + 1 = 6

Savings = (9,00,000 / 6) × 1 = 1,50,000

Average savings per month = 1,50,000 / 12 = 12,500

∴ Average savings per month = Rs 12,500