Question
The ratio of the income and savings of Michael is 6:2,
respectively. If his expenditure increases by an amount which is equal to 25% of his initial savings and his income increases by Rs. 1,500, then his savings will remain the same. Find his initial income.Solution
ATQ, Let the income and saving of Michael be Rs. '6x' and Rs. '2x', respectively. So, his expenditure = 6x - 2x = Rs. '4x' His new expenditure = 4x + 0.25 × 2x = Rs. '4.5x' Since savings remain the same, therefore His new income = 4.5x + 2x = Rs. '6.5x' ATQ: 6.5x - 6x = 1500 Or, 0.5x = 1500 Or, x = 1500 ÷ 0.5 Or, x = 3000 So, his initial income = 6x = 6 × 3000 = Rs.18000
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