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Public Service Entrance Exam (PSEE) · Question

A department's annual budget is $2 million. Operational costs are 60% of the budget. If project A accounts for 25% of the remaining budget, how much is allocated to Project A?

Operational costs are 60% of $2M = $1.2M. Remaining budget is $2M - $1.2M = $0.8M. Project A is 25% of $0.8M = $200,000.

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Question: A department's annual budget is $2 million. Operational costs are 60% of the budget. If project A accounts for 25% of the remaining budget, how much is allocated to Project A?

Answer options:

  • $500,000 ✅ $200,000
  • $300,000
  • $400,000

Correct answer: $200,000

Explanation: Operational costs are 60% of $2M = $1.2M. Remaining budget is $2M - $1.2M = $0.8M. Project A is 25% of $0.8M = $200,000.

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