The incomes of P and S are in the ratio 7 : 6 and their expenditures are in the ratio 6 : 5. If each of them saves Rs 2,500, what are their incomes?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs 17,500 and Rs 15,000
Income − expenditure = saving for each person; the equal savings give two equations.
Incomes \(7x,\ 6x\); expenditures \(6y,\ 5y\)
\(7x-6y=2500\) and \(6x-5y=2500\)
Subtracting: \(x-y=0\), so \(y=x\)
\(7x-6x=2500\), so \(x=2500\)
Incomes \(=7\times2500=\) Rs 17,500 and \(6\times2500=\) Rs 15,000
Check: expenditures Rs 15,000 and Rs 12,500 (ratio 6 : 5), savings Rs 2,500 each
Their incomes are Rs 17,500 and Rs 15,000.