Rahim earns ₹14,000 per month, and Ami earns ₹1,80,000 per annum. If both spend ₹10,000 per month, what is the ratio of their savings?
Show answer & explanation
Correct answer: C
Explanation
Rahim's annual income = 14,000 × 12= ₹1,68,000
Rahim's annual savings = 1,68,000 - (10,000 × 12)
= 1,68,000 - 1,20,000= ₹48,000
Annual income of the second person = ₹1,80,000
Annual savings = 1,80,000 - 1,20,000= ₹60,000
Ratio of savings = 48,000 : 60,000= 4 : 5