Question
Pawan earns Rs. 40,000, which is 20% less than Bhuvan's
income. Bhuvan spends 60% of his income and saves the remaining amount. The savings ratio of Pawan to Bhuvan is 12:25. Determine how much Pawan spends.Solution
ATQ, Income of ‘Pawan’ = Rs. 40000 Therefore, income of ‘Bhuvan’ = 40000/0.8 = Rs. 50000 Savings of ‘Bhuvan’ = 0.4 × 50000 = Rs. 20000 Savings of ‘Pawan’ = 20000 × (12/25) = Rs. 9600 Expenditure of ‘Pawan’ = 40000 – 9600 = Rs. 30400
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