Question

If A’s salary increase by 25% and his expenditure is 20% then find the ratio between expenditure and Income. If savings of A is the same in both conditions.

1. 5 : 4
2. 7 : 4
3. 11 : 4
4. 4 : 11
5. None

Answer 1

Correct Answer - Option 1 : 5 : 4

Given:

Increment in salary = 25%

Increment in expenditure = 20%

Calculation:

Let be assume Income of A is I and expenditure of A is E and savings is S

Before-

⇒ I = E + S,

⇒ S = I – E … (1)

After-

⇒ (5/4)A = (6/5)E + S

⇒ S = (5/4)A – (6/5)E … (2)

From equation (1) and (2)

⇒ E/I = 5/4

⇒ 5 : 4

∴ The required result is 5 : 4.