Question

The bar graph given below shows the percentage distribution of total expenditure of a company under various expense heads during 2003.

What is the ratio of the total expenditure on infrastructure and transport to the total expenditure on taxes and interest on loans?

• A. 5 : 4
• B. 8 : 7
• C. 9 : 7
• D. 13 : 11

Hint:

When dealing with percentage distributions in ratios, you can directly use the percentage values. Ensure accurate reading of the graph and simplify the resulting ratio to its lowest terms.

Answer 1

The Correct Option is D

Step 1: Identify the percentage expenditure on infrastructure and transport.
From the bar graph:
Percentage expenditure on Infrastructure = 20\%
Percentage expenditure on Transport = 12.5\%
Step 2: Calculate the total percentage expenditure on infrastructure and transport.
Total percentage expenditure on Infrastructure and Transport = 20\% + 12.5\% = 32.5\%
Step 3: Identify the percentage expenditure on taxes and interest on loans.
From the bar graph:
\ Percentage expenditure on Taxes = 10\%
Percentage expenditure on Interest on loans = 17.5\%
Step 4: Calculate the total percentage expenditure on taxes and interest on loans.
Total percentage expenditure on Taxes and Interest on loans = 10\% + 17.5\% = 27.5\%
Step 5: Find the ratio of the total expenditure on infrastructure and transport to the total expenditure on taxes and interest on loans.
Ratio = (Total percentage expenditure on Infrastructure and Transport) :
(Total percentage expenditure on Taxes and Interest on loans) Ratio = 32.5\% : 27.5\% Step 6: Simplify the ratio by removing the percentage sign and the decimal.
Multiply both sides by 10 to remove the decimal:
Ratio = 325 : 275 Step 7: Further simplify the ratio by dividing both sides by their greatest common divisor. The greatest common divisor of 325 and 275 is 25. Ratio = \( \frac{325}{25} : \frac{275}{25} = 13 : 11 \)