The ratio of earnings of Amit and Babu is 3 : 5. If the earnings of Amit increase by 20% and the earnings of Babu decrease by 20%, the new ratio of their earnings becomes 9 : 10. What is Amit’s earning?
Solution
Correct Answer: Option D
Let Amit’s earning be a rupees per month and Babu’s earnings be Rs. b per month.
We have a : b = 3 : 5 -------------[1]
And
After increase in earnings, Amit’s income = a + 20% of a
⇒ a + 20/100 × a
= a + 0.2a
= 1.2a
and After decrease in earnings, Babu’s salary = b - 20% of b
⇒ b - 20/100 × b
= b – 0.2b
= 0.8b
Now, we have 1.2a : 0.8b = 9 : 10
⇒1.2a × 10 = 0.8b × 9
⇒ a/b = 3/5
We only know ratio, we could not reach at any decisive step, we can say that their earnings cannot be determined.
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