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Bunuel
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Cash=40%*Income
Exp=20%*Cash => 20%*(40%*Income) = 8%*Income
The rest = Stock = 100%*Income - 40%*Income - 8%*Income = 52%*Income

Exp: Stock = 8% : 52% = 2:13

Answer: E
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(E)
40%x = savings

20%*40%x = expense
0.08x

total 0.4x + 0.08x = 0.48x
rest stocks = 0.52x

ratio = 0.08x/0.52x = 2/13

Bunuel
Jack’s cash savings is 40% of his income and his expenditure is 20% of his cash savings. If he invested his remaining amount in stocks, which of the following represents the ratio of expenditure and amount invested in stocks?

A. \(1 : 2\)
B. \(2 : 1\)
C. \(2 : 7\)
D. \(2 :11\)
E. \(2 : 13\)


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Bunuel. i took total income as 800 and then cash saving is 320 and explenses are 64 . the ratio now is 64:256 that is 1/4. what am i doing wrong?
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jamiedimonn
Bunuel. i took total income as 800 and then cash saving is 320 and explenses are 64 . the ratio now is 64:256 that is 1/4. what am i doing wrong?

It should be 64/(800 - 64 - 320) = 2/13. Is there any reason you complicate your solution process by picking 800 instead of using a simpler number like 100?
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maybe i am bad at picking numbers . i am sorry . any way to learn how to pick numbers ?
Bunuel
jamiedimonn
Bunuel. i took total income as 800 and then cash saving is 320 and explenses are 64 . the ratio now is 64:256 that is 1/4. what am i doing wrong?

It should be 64/(800 - 64 - 320) = 2/13. Is there any reason you complicate your solution process by picking 800 instead of using a simpler number like 100?
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jamiedimonn
maybe i am bad at picking numbers . i am sorry . any way to learn how to pick numbers ?
Bunuel
jamiedimonn
Bunuel. i took total income as 800 and then cash saving is 320 and explenses are 64 . the ratio now is 64:256 that is 1/4. what am i doing wrong?

It should be 64/(800 - 64 - 320) = 2/13. Is there any reason you complicate your solution process by picking 800 instead of using a simpler number like 100?


Number plugging:


How to Do Math on the GMAT Without Actually Doing Math
The Power of Estimation for GMAT Quant
How to Plug in Numbers on GMAT Math Questions
Number Sense for the GMAT
Can You Use a Calculator on the GMAT?
Why Approximate?
GMAT Math Strategies — Estimation, Rounding and other Shortcuts
The 4 Math Strategies Everyone Must Master, Part 1 (1. Test Cases and 2. Choose Smart Numbers.)
The 4 Math Strategies Everyone Must Master, part 2 (3. Work Backwards and 4. Estimate)
Intelligent Guessing on GMAT
How to Avoid Tedious Calculations on the Quantitative Section of the GMAT
GMAT Tip of the Week: No Calculator? No Problem.
The Importance of Sorting Answer Choices on the GMAT

For more check Ultimate GMAT Quantitative Megathread

Hope it helps.
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