Question
The earnings ratio of individuals 'P' and 'Q' stands at
5:3, respectively. 'P' manages to save 20% of their income, which is precisely 80% of what 'Q' saves. Calculate the intricate ratio of the expenditures incurred by 'P' and 'Q', respectively.Solution
ATQ, Let the incomes of βPβ and βQβ be Rs. β5aβ and Rs. β3aβ, respectively Savings of βPβ = 0.2 Γ 5a = Rs. a Therefore, savings of βQβ = a/0.8 = Rs. 1.25a Expenditure of βPβ = 5a β a = Rs. 4a Expenditure of βQβ = 3a β 1.25a = Rs. 1.75a Required ratio = 4a:1.75a = 400a:175a = 16:7
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