The question is from CAT Ratio, Mixtures and Averages. This is a really simple question which can be solved in a single line. How do we compensate 11 low salary with one last month salary? CAT exam is known to test on basics rather than high funda ideas. A range of CAT questions can be asked from Ratios and Proportions, Mixtures, Alligations and Averages. Make sure you master the topics. 2IIMs CAT questions bank provides you with CAT questions that can help you gear for CAT Exam CAT 2020.
Question 40: Sambhunath had a great job in India but he went abroad to earn more money. He realized he had to make at least USD 6000/month in order to justify his foreign trip. He recorded an average of USD 5,500/ month for the first 11 months. What should be his earning on the last month in order for his foreign visit to make sense?
Deficit in each of the previous 11 months is $500, Sambhunath has to account for this in addition to $6,000 in the last month to have an average salary of $6,000 in the year.
So, he has to earn: 500 * 11 + 6000 = 11,500 to have an average salary of $6,000 for the year.
The question is "What should be his earning on the last month in order for his foreign visit to make sense?"
Choice B is the correct answer.
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