Question

In a year, Seema earns ₹$1,50,000$ and saves $70,000$. Find the ratio of money she saves to the money she spends.

Answer 1

Ratio of saved money to spent:

Money that Seema earns $=$₹$1,50,000$

Money that Seema saves $=$₹$70,000$

Hence, Money Seema Spends $=$money Seema earns $-$ money seema saves

$=$₹$1,50,000$$-$₹$70,000$

$=$₹$80,000$

Ratio of money she saves to the money she spends $=\frac{\mathrm{Saved}\mathrm{money}}{\mathrm{Spent}\mathrm{money}}\Rightarrow \frac{70,000}{80,000}\Rightarrow \frac{7\times 10,000}{8\times 10,000}$

Simplifying numerator and denominator, we get the simplified ratio $=\frac{7}{8}$ , as $10,000$ is common factor in nuemrator and denominator, so they will cancel out each other.

Hence, Ratio of money she saves to the money she spends$=\frac{7}{8}\Rightarrow 7:8$