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If monthly income of a person is increased by 20% and his expenditures are increased by 40%, then his savings are decreased by what percent? (ratio of income and expenditure is 4: 3 respectively.)
  • a)
    45%
  • b)
    40%
  • c)
    35%
  • d)
    30%
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
If monthly income of a person is increased by 20% and his expenditure...
Let income and expenditure are 'a' and 'b' respectively.
Savings = a - b = a - 3a/4 = a/4
When income and expenditure are increased by 20%. Then,
New income = 120% of a = 1.2a
New expenditure = 140% of b = 1.4 x 3a/4 = 2.1a/2
New savings = 1.2a - 2.1a/2 = 3a/20
Decrement in savings = (a/4) - (3a/20) = a/10
Percentage = a/10)/(a/4 x 100 = 40%
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Most Upvoted Answer
If monthly income of a person is increased by 20% and his expenditure...
Understanding the Problem
To solve the problem, let's first define the initial income and expenditure based on the given ratio of 4:3.
Initial Values
- Let the initial income (I) be 4x.
- Let the initial expenditure (E) be 3x.
Calculating Initial Savings
- Initial Savings (S) = Income - Expenditure
S = I - E = 4x - 3x = x
New Income and Expenditure
- New Income after a 20% increase:
New Income = I + 20% of I = 4x + 0.2 * 4x = 4.8x
- New Expenditure after a 40% increase:
New Expenditure = E + 40% of E = 3x + 0.4 * 3x = 4.2x
Calculating New Savings
- New Savings = New Income - New Expenditure
New Savings = 4.8x - 4.2x = 0.6x
Change in Savings
- Initial Savings = x
- New Savings = 0.6x
Decrease in Savings
- Decrease in Savings = Initial Savings - New Savings
Decrease = x - 0.6x = 0.4x
Percentage Decrease in Savings
- Percentage Decrease = (Decrease / Initial Savings) * 100
Percentage Decrease = (0.4x / x) * 100 = 40%
Thus, the savings are decreased by 40%, confirming that the correct answer is option B.
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If monthly income of a person is increased by 20% and his expenditures are increased by 40%, then his savings are decreased by what percent? (ratio of income and expenditure is 4: 3 respectively.)a)45%b)40%c)35%d)30%Correct answer is option 'B'. Can you explain this answer?
Question Description
If monthly income of a person is increased by 20% and his expenditures are increased by 40%, then his savings are decreased by what percent? (ratio of income and expenditure is 4: 3 respectively.)a)45%b)40%c)35%d)30%Correct answer is option 'B'. Can you explain this answer? for Railways 2024 is part of Railways preparation. The Question and answers have been prepared according to the Railways exam syllabus. Information about If monthly income of a person is increased by 20% and his expenditures are increased by 40%, then his savings are decreased by what percent? (ratio of income and expenditure is 4: 3 respectively.)a)45%b)40%c)35%d)30%Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Railways 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If monthly income of a person is increased by 20% and his expenditures are increased by 40%, then his savings are decreased by what percent? (ratio of income and expenditure is 4: 3 respectively.)a)45%b)40%c)35%d)30%Correct answer is option 'B'. Can you explain this answer?.
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