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Raghu’s ratio of income to expenditure is 2 : 1. His income increased by 30% and expenditure decreased by 10%. If the initial expenditure was ₹35,000,
Question

Raghu’s ratio of income to expenditure is 2 : 1. His income increased by 30% and expenditure decreased by 10%. If the initial expenditure was ₹35,000, find his final saving (in ₹).

A.

68,500

B.

58,500

C.

69,500

D.

59,500

Correct option is D

Given:
Ratio of Income to Expenditure = 2 : 1
Increase in Income = 30%
Decrease in Expenditure = 10%
Initial Expenditure = ₹35,000
Formula Used:
Savings = Income - Expenditure
Solution:
Since the ratio of Income to Expenditure is 2 : 1, and the Expenditure is 35000:
Initial Income = 2 × 35000 = 70000
New Income after 30% increase:
= 70000 + 30100×70000\frac{30}{100} × 70000​​
= 70000 + 21000 = 91000
New Expenditure after 10% decrease:
= 35000 - 10100×35000 \frac{10}{100} × 35000​​
= 35000 - 3500 = 31500
Final Savings = New Income - New Expenditure
= 91000 - 31500
= 59500
Final Answer
So the correct answer is (d)

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