Soham’s initial expenditure and savings were in the ratio 5: 1. His income increases by 25%, while his savings increase by 20%. If Soham’s current expenditure is ₹4,347, what was his initial income?
Answer & explanation
Correct answer: option 2
25% = \(\frac{1}{4}\) & 20% = \(\frac{1}{5}\)
Ratio of , Expenditure : Saving
5 : 1
let Expenditure = 50x , Saving = 10x
Income = 50x + 10x = 60x
New Income = 60x + \(\frac{1}{4}\) × 60x = 60x + 15x = 75x
New saving = 10x + \(\frac{1}{5}\) × 10x = 12x
Expenditure = 75x - 12x = 63x
ATQ ,
63x = 4347
x = 69
Initial income = 60x = 60 × 69 = 4140