Question

The total annual income of a, b and c is rs.15,96,000. A saves 20% of his income, while b and c saves 12.5% and 10% of their incomes respectively. If their annual savings are in the ratio 16 : 17 : 12, then the annual savings, in rupees, of b exceeds that of c by select one:

a. 23750

b. 19000

c. 4750

d. 7600

Answer 1

Total income = Rs 1596,000

Ratio of their saving = A : B : C = 16 : 17 : 12

Define x:

Let x be the constant ratio

A : B : C = 16x : 17x : 12x

A saves 20% of his income

20% = 16x

100% = 16x/20 x 100 = 80x

B saves 12.5% of his income

12.5% = 17x

100% = 17x/12.5 x 100 = 136x

C saves 10% of his income:

10% = 12x

100% = 12x/10 x 100 = 120x

Solve x:

Total income = Rs 1596000

80 x + 136x + 120x = 1596000

336x = 1596000

x = 1596000 ÷ 336

x = Rs 4750

Find each's savings:

A = 16x = 16(4750) = Rs76,000

B = 17x = 17(4750) = Rs 80,750

C = 12x = 12(4750) = Rs 57000

Find the difference in b's share and c's share:

B = Rs 80,750

C = Rs 57,000

Difference = 80750 - 57000 = Rs 23,750

Answer: (a) Rs 23,750