10 Views

Question : The monthly salary of a person was INR 75,000. He used to spend on Family Expenses (E), Taxes (T), and Charity (C), and the rest was his savings. E was 60% of the income, T was 20% of E and C was 15% of T. When his salary was raised by 40%, he maintained the percentage level of E, but T became 30% of E and C became 20% of T. The ratio of the savings of his earlier salary to that of his present salary is:

Option 1: 655 : 644

Option 2: 325 : 337

Option 3: 644 : 655

Option 4: 337 : 325


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: 655 : 644


Solution : Savings = Income − (E + T + C)
E = 0.60 × 75000 = 45000
T = 0.20 × 45000 = 9000
C = 0.15 × 9000 = 1350
Now, savings = 75000 − (45000 + 9000 + 1350) = 19650
When his salary was raised by 40%,
New Income = 1.40 × Old Income = 1.40 × 75000 = 105000
Also, new E = 0.60 × 105000 = 63000
New T = 0.30 × 63000 = 18900
New C = 0.20 × 18900  = 3780
⇒ New Savings = 105000 – (63000 + 18900 + 3780) = 19320
Now, the required ratio = $\frac{\text{Old Savings}}{\text{New Savings}}$ = $\frac{19650}{19320}$ = $\frac{655}{644}$
Hence, the correct answer is 655 : 644.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books