Question

The ratio of monthly income to the savings of a family is 7 : 2. If the savings be of Rs 500, find the income and expenditure.

Answer 1

We have the ratio of income : savings = 7 : 2.
So, let the income be 7x and the savings be 2x. It is given that the savings are Rs 500.
Therefore, 2x = 500
x = Rs $\frac{500}{2}$ = Rs 250
Thus, the income = 7x = 7 $\times$ 250 = Rs 1750.
Now, expenditure = Income $-$ savings = Rs 1750 $-$ Rs 500 = Rs 1250.
Thus, the income = Rs 1750, and the expenditure = Rs 1250.