In September the ratio of the amount Ray spent and the amount he saved was 4:1. In October, he got a salary raise. He in creased his spending by 25% but saved the same amount. Find the new ratio.
Look at the ratio. He now saves $1 for every $5.
His new salary is 1.25 as much, so where he earned $5, he now earns 5*1.25 = $6.25
Now he saves $1 for every $6.25, so the ratio is 5.25:1 or 21:4
To find the new ratio, we first need to calculate the new amounts Ray spent and saved in October.
Let's assume Ray spent $x in September. According to the given ratio, the amount he saved would be 1/4 of $x, which is $x/4.
In October, Ray increased his spending by 25%. So his new spending would be 125% of $x, which is 1.25*$x.
However, we know that Ray saved the same amount in October as he did in September, which is $x/4.
Now, we can calculate the new ratio by dividing the new spending by the new savings. Therefore, the new ratio is:
(1.25*$x) / ($x/4)
Simplifying this expression:
(5/4) * $x / ($x/4)
The $x in the numerator and the denominator will cancel each other out, leaving us with:
5/4
Thus, the new ratio is 5:4.