Question
The monthly earnings and expenses
of a person are in the ratio of 8:3. The earnings increase by 40%, and the expenses decrease by 25%. If the initial expenses amount to Rs. 12,000, determine the final savings.Solution
ATQ,
The initial expenditure = 12,000 Ratio of earnings to expenses = 8:3 3 units = 12,000 1 unit = 4,000 Initial earnings = 8 units = 8 × 4,000 = 32,000 Earnings after 40% increase = 32,000 × 140/100 = 44,800 Expenses after 25% decrease = 12,000 × 75/100 = 9,000 Final saving = 44,800 – 9,000 = Rs. 35,800
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