Soham’s initial expenditure and savings were in the ratio 5: 1. His income increases by 25%, while his savings increase by 20%. If Soham’s current expenditure is ₹4,347, what was his initial income?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹4,140
Explanation:
Let Soham's initial expenditure and savings be 500x and 100x.
So, the initial income be 600x.
The increased income = = 750x.
The increased savings = = 120x.
Then the increased expenditure = 750x - 120x = 630x
According to the given question, 630x = 4347 ⇒ x = 6.9
Now, Soham's initial income is 600x = 600 × 6.9 = 4140
Hence the required answer is ₹4,140.