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Monthly income and monthly savings of Manish is decreased by 15% and 20%, respectively. If his monthly expenditure remains the same, then find the ratio of his initial salary and initial expenditure.

Question

Monthly income and monthly savings of Manish is decreased by 15% and 20%, respectively. If his monthly expenditure remains the same, then find the ratio of his initial salary and initial expenditure.

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Solution

Let's assume Manish's initial monthly income was 100 units and his monthly expenditure was E units. This means his savings were (100 - E) units.

After the decrease, his income is now 85 units (a decrease of 15%) and his savings are now 80% of (100 - E), which is 0.8*(100 - E) units.

Since his expenditure remains the same, we can set up the following equation:

Income - Expenditure = Savings 85 - E = 0.8*(100 - E)

Solving this equation for E, we get:

E = 85 - 0.8*(100 - E) E = 85 - 80 + 0.8E 0.2E = 5 E = 5 / 0.2 E = 25 units

So, the ratio of his initial salary to his initial expenditure is 100:25 or 4:1.

This problem has been solved

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