Question
The sum of the income of ‘A’ and ‘B’ is Rs. 90,000, and the ratio between the income of ‘A’ and ‘B’ is 5:4, respectively. ‘A’ and ‘B’ spend 35% and 25% of their respective income. Find the difference between the savings of ‘A’ and ‘B’.
Solution
Income of ‘A’ = 90,000 × (5/9) = Rs. 50,000
So, income of ‘B’ = 90,000 - 50,000 = Rs. 40,000
The savings of ‘A’ = 50,000 × 0.65 = Rs. 32,500
And the savings of ‘B’ = 40,000 × 0.75 = Rs. 30,000
So, required difference = 32,500 - 30,000 = Rs. 2500
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