Question

Raghu spent 25% of his salary. Salary of Raghu is increased by 20%, and his expenditure is increased to 40%. What will be the ratio of Raghu’s Initial Saving and Final Saving?
1. 24 : 25
2. 26 : 25
3. 25 : 26
4. 25 : 24
5. 12 : 21

Answer 1

Correct Answer - Option 4 : 25 : 24

Given:

Expenditure of Raghu = 25%

Increase in his Salary = 20%

His expenditure increased to 40%

Concept Used:

We solve this type of problem using the unitary method and ratio for easy calculation.

Calculation:

Let the Salary of Raghu be 100 Units

Amount Spent = 25% of 100 = 25

Initial Saving = 100 – 25 = 75

Increased salary of Raghu = {(100 + 20)/100} × 100 = 120

New expenditure = (40/100) × 120 = 48

New Savings = 120 – 48 = 72

Initial saving/Final saving = 75/72 = 25/24

∴ The ratio of Initial Saving and Final saving is 25 : 24