The daily expenditure of A and B are in the ratio 7 : 9. If both of them reduced their daily expenditure by Rs. 500 per day, the new ratio of their daily expenditure becomes 11 : 17. What is their average daily savings after reduction in daily expenditure if both of them spends 20% of total daily earning on their daily expenditure?
The daily expenditure of A and B are in the ratio 7 : 9. If both of them reduced their daily expenditure by Rs. 500 per day, the new ratio of their daily expenditure becomes 11 : 17. What is their average daily savings after reduction in daily expenditure if both of them spends 20% of total daily earning on their daily expenditure? Correct Answer Rs. 2800
Let previous daily expenditure of A and B be Rs. M and Rs. N respectively.
Given,
M : N = 7 : 9
⇒ M = 7N/9
Then,
⇒ (M – 500) : (N – 500) = 11 : 17
⇒ 17M – 8500 = 11N – 5500
⇒ 17M – 11N = 3000
Solving,
⇒ 119N – 99N = 3000 × 9
⇒ 20N = 27000
⇒ N = 1350
⇒ M = (7/9) × 1350 = 1050
New expenditure of A = 1050 – 500 = 550
New expenditure of B = 1350 – 500 = 850
Given,
Daily earning of A = 550 × 100/20 = 2750
Daily earning of B = 850 × 100/20 = 4250
∴ Required average of daily savings of A and B
= /2 = Rs. 2800