The expenditure and savings of a person are in ratio 4 : 3, His savings increase by 1/5 of his income and income remains the same. What is the new ratio of his expenditure and savings ?
Answer & explanation
Correct answer: option 3
Ratio of expenditure and savings = 4 : 3
Let us assume income = 7
New savings = 3 + \(\frac{1}{5}\) x 7 = \(\frac{22}{5}\)
New expenditure = 7 - \(\frac{22}{5}\) = \(\frac{13}{5}\)
Ratio of expenditure and savings = \(\frac{13}{5}\) : \(\frac{22}{5}\) = 13 : 22