The incomes of A, B and C are in the ratio 1 : 2 : 3 and their expenditures are in the ratio 4 : 7 : 13. If A saves 20% of his income, find the ratio of their savings.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 1 : 3 : 2
Saving = income − expenditure. A’s saving rate links the two multipliers.
Incomes \(x,\ 2x,\ 3x\); expenditures \(4y,\ 7y,\ 13y\)
A saves 20%, so A spends 80%: \(4y=0.8x\) and \(y=0.2x\)
Saving of A \(=x-0.8x=0.2x\)
Saving of B \(=2x-7(0.2x)=2x-1.4x=0.6x\)
Saving of C \(=3x-13(0.2x)=3x-2.6x=0.4x\)
Savings ratio \(=0.2:0.6:0.4=1:3:2\)
The ratio of their savings is 1 : 3 : 2.