Question

If the incomes of 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

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:
$50=\frac{x-E_1}{E_1}\times 100\Rightarrow \frac{50}{100}=\frac{x}{E_1}-1\Rightarrow x=\frac{150}{100}{E}_1$...(i)
$60=\frac{x-E_2}{E_2}\times 100\Rightarrow \frac{60}{100}=\frac{x}{E_2}-1\Rightarrow x=\frac{160}{100}{E}_2$....(ii)
From (i) and (ii), we get:
$\frac{150}{100}{E}_1=\frac{160}{100}{E}_2\Rightarrow \frac{E_1}{E_2}=\frac{160}{150}=\frac{16}{15}$ (Required ratio).