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Question
A man's monthly inoome is Rs 5,000. He saves every month a minimum of R~ 800. Find the ratio of his:
Annual expenses to annual Income.
Solution
Annual income=monthly income x 12 =Rs 5,000 x 12 = Rs 60,000
Monthly expenses= Rs 5,000 - 800 =Rs 4,200
Annual expenses= monthly expenses x 12 =Rs 4,200 x 12 = Rs 50,400
`"Annual expenses" /"Annual income" = 50400/60000 = 504/600 = 21/25`
Therefore, Annual expenses : annual income= 21:25
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