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The expenditure and savings of a person are in the ratio of 4 : 1. If his savings areincreased by 25% of his income, then what is the new ratio of his expenditure andsavings ?
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The expenditure and savings of a person are in the ratio of 4 : 1. If ...
Solution:


Given, the expenditure and savings of a person are in the ratio of 4:1.
Let the person's income be x. Therefore, his expenditure and savings are 4x/5 and x/5 respectively.


Step 1: Increase in savings
As per the question, his savings are increased by 25% of his income. Therefore, his new savings will be:
x/5 + 25% of x = x/5 + x/20
= 5x/20 + x/20
= 6x/20
= 3x/10


Step 2: New ratio of expenditure and savings
Now, the person's expenditure and new savings are 4x/5 and 3x/10 respectively.
We can simplify this ratio by finding the common multiple of 5 and 10, which is 10. Therefore, the new ratio can be written as:
8x/10 : 3x/10
= 8:3


Therefore, the new ratio of expenditure and savings is 8:3.


Conclusion:
Hence, we can conclude that if a person's savings are increased by 25% of his income, then the new ratio of his expenditure and savings is 8:3.
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The expenditure and savings of a person are in the ratio of 4 : 1. If his savings areincreased by 25% of his income, then what is the new ratio of his expenditure andsavings ?
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The expenditure and savings of a person are in the ratio of 4 : 1. If his savings areincreased by 25% of his income, then what is the new ratio of his expenditure andsavings ? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The expenditure and savings of a person are in the ratio of 4 : 1. If his savings areincreased by 25% of his income, then what is the new ratio of his expenditure andsavings ? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The expenditure and savings of a person are in the ratio of 4 : 1. If his savings areincreased by 25% of his income, then what is the new ratio of his expenditure andsavings ?.
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