Soham’s initial expenditure and savings were in the ratio 5: 1. His income increases by 25%, while his savings increase by 20%. If Soham’s current expenditure is ₹4,347, what was his initial income?
Explanation:
Let Soham's initial expenditure and savings be 5x and x respectively. ∴ Initial Income of Soham = 5x + x = 6x
His new income = 6x × 1.25 = 7.5x His new savings = x × 1.20 = 1.2x ∴ His new expenditure = 7.5x - 1.2x = 6.3x
⇒ 6.3x = 4347 ⇒ x = 690
∴ Soham's initial income = 6x = 6 × 690 = Rs. 4140.
Hence, option (b).