The income of A, B and C are in the ratio 1 : 2 : 3 and their spending’s are in the ratio 4 : 7 : 13. If A saves 20% of his income, then find the ratio of their savings.
Answer & explanation
Correct answer: option 2
A : B : C
Income: 1 : 2 : 3 ..........(i)
Exp.: 4 : 7 : 13 .........(ii)
**Note: If a saves 20% = \(\frac{1}{5}\) of his income, it means
For A ⇒ Income : Expenditure = 5 : 4.
*[According to this ratio of income and Exp. of A is 1 : 4 but according to condition it should be 5 : 4
Therefor in this situation always follow two steps
a) Make it in the ratio 1 : 1
b) multiply by the new ratio in which we want to convert.]
a)
A : B : C
Income: 4 x (1 : 2 : 3
Exp.: 1 x ( 4 : 7 : 13
b)
A : B : C
Income: 5 x 4 x (1 : 2 : 3
Exp.: 4 x 1 x ( 4 : 7 : 13
New Ratio:
A : B : C
Income: 20 : 40 : 60
Exp.: 16 : 28 : 52
Saving: 4 : 12 : 8
1 : 3 : 2