Question: For a road to be built in Alabama, the committee decided that each and every member of the town will give a fixed amount of money for the purpose. Thus, 75% of the amount needed was collected from the citizens of Alabama, which equaled $600 on an average. If it is known that people of Alabama represent 60% of the total population of the area that the road will serve and if the road committee has to raise exactly the amount needed for building the road, what should be the average donation from people of rest of the service area?
Let x be the total number of people from which the committee will ask for donations.
Now, 360x constitutes 75% of the amount.
Average donation from the remaining people = 120x/0.4x = $300.
Hence, option (b).