The tax on the salary of C is 1/4 of the salary and savings are 1/3 of the salary. The ratio of the expenditures to the savings is ____________.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 5 : 4.
Given:
Tax = 1/4 of salary
Savings = 1/3 of salary
Explanation:
Let the salary of C be 12x.
Now, tax = 3x and savings = 4x
Now the expenditure = 12x - (3x + 4x) = 12x - 7x = 5x
Now the required ratio = 5x : 4x = 5 : 4.
Hence, the ratio of expenditures to savings is 5 : 4.