The income of A is 60% less than that of B, and the expenditure of A is equal to 60% of B’s expenditure. If A’s income is equal to 70% of B’s expenditure, then what is the ratio of the savings of A and B ?
Answer & explanation
Correct answer: option 4
Let the income of b be Rs. 5x,
Income of A is 60% less than that of B,
\(\frac{100 - 60}{100}\) = \(\frac{2}{5}\)
Income of A = 5x - \(\frac{2}{5}\) = Rs.2x
Let the expenditure of B rs. 5y
Expenditure of A is equal to 60% of B's expenditure
\(\frac{60}{100}\) = \(\frac{3}{5}\)
Expenditure of A = 5y x (\(\frac{3}{5}\)) = 3y,
According to the question,
2x = 5y x (\(\frac{70}{100}\))
⇒ 2x = y x (\(\frac{7}{2}\))
⇒ 4x = 7y,
⇒ x : y = 7 : 4,
Savings of A = 2x - 3y = 2 x 7 - 3 x 4 = 14 - 12 = 2,
Savings of B = 5x - 5y = 5(7 - 4) = 5 x 3 = 15,
Therefore, ratio of savings A to b = 2 : 15.