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

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