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person will save a certain amnt of income this yr and spend [#permalink]

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08 Sep 2004, 12:07

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person will save a certain amnt of income this yr and spend the rest. next yr person will have no income but for each $ saved this yr, will have 1+r next year. in terms of r wht fraction of the income shud person save so that next year amnt avilable to spend is half the amount spent this year

1. 1/(r+2)
2. 1/(2r+2)
c. 1/(3r+2)
d. 1/(r+3)
e. 1/(2r+3)

Perfect Intr3pid. Got the same, used, X (income) and Y (expense for this year = X-$, where $=saving this year) instead. The catch is to read this properly..

For every $ saved this year, the person will have (1+r) next year. Which is $(1+r) = (X-$)/2

=>2$+2r$=X-$
=>3$+2r$=X
=>$(3+2r)=X

Question is X/$=? and we have from above = 1/(3+2r).
E.