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The respective ratio of income and expenditure of a man is 3 : 1. If his income is increased by 25 percent and expenditure is decreased by 40 percent, then what will be the respective ratio of his new income and new expenditure?

The respective ratio of income and expenditure of a man is 3 : 1. If his income is increased by 25 percent and expenditure is decreased by 40 percent, then what will be the respective ratio of his new income and new expenditure? Correct Answer 25 : 4

Given:
Ratio of income to expenditure 3 : 1

Calculation:

Let income be 3x and expenditure be x

Increased income = 1.25(3x) = 3.75x

Decreased expenditure = 0.6x

Required ratio of income to expenditure = 3.75x/0.6x = 25/4

∴ Respective ratio of his new income and new expenditure = 25 : 4.

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