Let's say she saved $1 each month. At the end of the year, she'll have saved $12.Alice's take home pay last year was the same each month and she saved the same fraction of her take home pay each month. The total amount of money that she had saved at the end of the year was three times the amount of that portion of her monthly take home pay that she did not save. If all the money that she saved last year was from her take home pay, what fraction of her take home pay did she save each month?
(A) 1/2
(B) 1/3
(C) 1/4
(D) 1/5
(E) 1/6
We know that the amount she saved for the whole the year ($12) was three times the amount that she did not save each month. So she must not have saved $4 each month.
If she saved $1 each month and did not save $4 each month, her total monthly pay would be $5. Because she saved $1, she saved 1/5 of her monthly pay. Answer is D
