Shortcut Trick
Initial Income : Expenditure = 6 : 5. Given 5 units = ₹4,50,000, so 1 unit = ₹90,000.
New Income = 6 × 1.4 = 8.4 units.
New Expenditure = 5 × 0.8 = 4.0 units.
Final Saving = 8.4 − 4.0 = 4.4 units.
Final Value = 4.4 × 90,000 = ₹3,96,000.
∴ The correct answer is ₹3,96,000.
Alternate Method
Given:
Ratio of Income to Expenditure = 6 : 5
Initial Expenditure = ₹4,50,000
Income increases by 40% and Expenditure decreases by 20%.
Formula Used:
Income = Expenditure + Saving
Initial Values
Income: 5,40,000
Exp: 4,50,000
Sav: 90k
Final Values
New Income (+40%): 7,56,000
New Exp (−20%): 3,60,000
New Sav: 3,96,000
Calculations:
⇒ Let Income be 6x and Expenditure be 5x.
⇒ 5x = 4,50,000 ⇒ x = 90,000
⇒ Initial Income = 6 × 90,000 = ₹5,40,000
⇒ Income increases by 40%: New Income = 5,40,000 × (1 + 40 ÷ 100) = ₹7,56,000
⇒ Expenditure decreases by 20%: New Expenditure = 4,50,000 × (1 − 20 ÷ 100) = ₹3,60,000
⇒ Final Saving = New Income − New Expenditure
⇒ Final Saving = 7,56,000 − 3,60,000 = ₹3,96,000
∴ The correct answer is ₹3,96,000.
Additional Information
Income and Expenditure Relationship
The fundamental formula is: Income = Expenditure + Saving. Changes in income are directly distributed among the sum of changes in expenditure and saving.
Percentage Increase / Decrease
For any value changing by R%, the new value is computed as Base Value × (1 ± R ÷ 100), using addition for an increase and subtraction for a decrease.
Ratio Multiplier
When values are given in a ratio a : b, calculating the absolute value for 1 unit allows scaling up linearly to evaluate any connected part quickly.