Question

If the incomes of the two Companies were equal in 1999, then what was the ratio of expenditure of Company X to that of Company Y in 1999?

• A. 6 : 5
• B. 5 : 6
• C. 11 : 6
• D. 16 : 15
• E. 15 : 16

Answer 1

The correct option is D

16 : 15

Let the incomes of each of the two Companies X and Y in 1999 be Rs. x.

And let the expenditures of Companies X and Y in 1999 be E${}_1$ and E${}_2$ respectively.

Then, for Company X we have :

$\begin{array}{ccc}50=\frac{x-E_1}{E_1}\times 100\Rightarrow \frac{50}{100}=\frac{x}{E_1}-1\Rightarrow x=\frac{150}{100}{E}_1& & ...\left(i\right)\\ ForCompanyYwehave:60=\frac{x-E_2}{E_2}\times 100\Rightarrow \frac{60}{100}=\frac{x}{E_2}-1\Rightarrow x=\frac{160}{100}{E}_2& & ...\left(ii\right)\\ From\left(i\right)and\left(ii\right),weget:\frac{150}{100}{E}_1=\frac{160}{100}{E}_2\Rightarrow \frac{E_1}{E_2}=\frac{160}{150}=\frac{16}{15}\left(Requiredratio\right)& & \end{array}$