The incomes of A and B are in the ratio 5 : 3. The expenditure of A, B and C are in the ratio 8 : 5 : 2. If C spends ₹2000 and B saves ₹700, then what amount does A save?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹1500
Saving = income − expenditure. C’s spending fixes the value of one part of the expenditure ratio; B’s saving then gives B’s income, and the income ratio gives A’s.
Expenditures (ratio 8 : 5 : 2, C spends ₹2000):
One part \(=2000\div2=\) ₹1000
A spends \(8\times1000=\) ₹8000
B spends \(5\times1000=\) ₹5000
Incomes (ratio 5 : 3):
B’s income \(=5000+700=\) ₹5700
A’s income \(\displaystyle =5700\times\frac{5}{3}=\) ₹9500
A’s saving \(=9500-8000=\) ₹1500