Question

Income of Rahim is $12,060.00 per month and that of Ami is ¢191,520.00 per annum. If the

monthly expenditure of each of them is ¢10,960.00 per month find the ratio of their savings.
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Answer 1

`R: A = 18283 : 56425` --- Actual

`R: A = 1 : 3` --- Estimate

Step-by-step explanation:

Given

Let

`R \to` Rahim's savings

`A \to` Ami's savings

Their income is:

`Rahim = \$12060.00`

`Ami = c191520.00`

`Expenditure = c10960.00`

Required

Ratio of their monthly savings

First, convert Rahim's income from USD to Ghana Cedis (¢)

`Rahim = \$12060.00`

Multiply by 5.76

`Rahim = c12060.00 * 5.76`

`Rahim = c69465.60`

Subtract their expenditure from the income, to get their monthly savings:

`R = Rahim - Expenditure`

`R = c69465.60 - c10960.00`

`R = c58505.60`

`A = Ami- Expenditure`

`A = c191520.00- c10960.00`

`A = c180560.00`

The ratio of their savings is:

`R : A`

`R : A = c58505.60 : c180560.00`

Remove units and multiply by 10

`R : A = 585056.00 : 1805600.00`

Divide by 32 (their gcd)

`R: A = 18283 : 56425` ---- this is the actual ratio of their savings

To get an estimate; divide by 18283

`R: A = 1 : 3.086`

Approximate

`R: A = 1 : 3`