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HomeCATData Interpretation & LRCAT DILR — Caselets › A household's annual budget of ₹6,00,000 is dist…

A household's annual budget of ₹6,00,000 is distributed across categories as follows: | Category | Percentage | |----------|------------| | Housing | 30% | | Food | 20% | | Transportation | 12% | | Healthcare | 8% | | Education | 15% | | Entertainment | 5% | | Savings | 10% | If the household decides to double its Savings while reducing Entertainment to zero, what will be the new Savings amount?

A₹120,000
B₹60,000
C₹150,000
D₹90,000 (10% original = 60000; double = 120,000? Hmm let me recheck. 10% of 600000 = 60,000. Double = 120,000)
Answer & Solution
Correct answer: A. ₹120,000
Current savings: 10% × 6L = 60,000. Double = 1,20,000. (The released 5% from Entertainment can fund the doubling: 10% → 20% = 1,20,000. Required additional 10% = 60k; freed from Entertainment = only 5% = 30k. Shortfall = 30k. Hence cannot strictly double from those two categories alone, but the question asks what new Savings WOULD be if doubled = 120,000.)
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