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 ‘P’ and ‘Q’ be Rs. ‘5a’ and Rs. ‘3a’, respectively Savings of ‘P’ = 0.2 × 5a = Rs. a Therefore, savings of ‘Q’ = a/0.8 = Rs. 1.25a Expenditure of ‘P’ = 5a – a = Rs. 4a Expenditure of ‘Q’ = 3a – 1.25a = Rs. 1.75a Required ratio = 4a:1.75a = 400a:175a = 16:7
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