The income of A, B and C are in the ratio 4 : 6 : 5 and their expenditure are in the ratio 5 : 8 : 6. If A saves 25 % of his income, then find the ratio of their savings.
Answer & explanation
Correct answer: option 3
A : B : C
Income: 4 : 6 : 5 ..........(i)
Exp.: 5 : 8 : 6 .........(ii)
**Note: If a saves 25% = \(\frac{1}{4}\) of his income, it means
For A ⇒ Income : Expenditure = 4 : 3.
*[According to this ratio of income and Exp. of A is 4 : 5 but according to condition it should be 4 : 3
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: 5 x (4 : 6 : 5
Exp.: 4 x ( 5 : 8 : 6
b)
A : B : C
Income: 4 x 5 x (4 : 6 : 5
Exp.: 3 x 4 x ( 5 : 8 : 6
New Ratio:
A : B : C
Income: 80 : 120 : 100
Exp.: 60 : 96 : 72
Saving: 20 : 24 : 28
5 : 6 : 7