The income of A is 60% less than that of B, and the expenditure of A is equal to 60% of B’s expenditure. If A’s income is equal to 70% of B’s expenditure, then what is the ratio of the saving of A and B?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e 2 : 15
Let the income of B be " 10x"
Then, the income of A = 4x
Let the expenditure of B be "y"
Now, According to the question,
⇒ 4x = 0.7 × y
⇒ y = 40x / 7 ------------------------- eqn 1
Given, A's expenditure = 0.6 × (40x) / 7
= 24x / 7
A's savings = 4x - (24x) / 7
= 4x / 7
B's savings = 10x - (40x) / 7
= 30x / 7
⇒ Ratio of A's savings to B's savings = 2 : 15