Business Maths Ratio

Greetings …!!
from
Dr. L. ESWARAN
Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

CMA - FOUNDATION
PAPER - 4
FUNDAMENTALS OF BUSINESS
MATHEMATICS AND STATISTICS

RATIO
Meaning:
Ratio is the mathematical expression of the relationship

between two numbers or quantities of the same kind
with regard to their magnitude.
Example:
In a business, salesman A earned incentive of ₹.10,000

and salesman B earned incentive of ₹.20,000.
We can compare that Salesman B earns double that of

Salesman A.
i.e. Ratio is 10,000 / 20,000 = ½ or 1 : 2.

RATIO - DEFINITION
• “The relationship or proportion that one amount

bears to another, the first number being numerator
and the latter denominator”.
• Note:
1) If A and B are two similar quantities in a ratio of
A:B the ‘A’ and ‘B’ are called the terms of ratio.
2) In which ‘A is called the first term – antecedent

and ‘B’ is called second term – consequent.

RATIO - PROPERTIES
1) The ratio is not changed by multiplying or dividing the
antecedent and consequent by the same number.
Eg. a) 3:4 multiplied by 2, 6:8
b) 20:12 divided by 4, 5:3
2) Two or more ratios can be compared by changing them to the

same denominator.
Eg. a) in the ratios 2:5 and 4:15 which is greater?
2/5 and 4/15 6/15 and 4/15 Greater one is 2/5
3) If a=b then the ratio a:b is called equal ratio. (Eg. 1:1)
4) If a>b then the ratio a:b is called greater inequality. (Eg. 4:3)
5) If a<b then the ratio a:b is called lesser inequality. (Eg. 3:4)
KINDS OF RATIOS
• INVERSE RATIO
• EQUIVALENT RATIO
• COMPOUNDED RATIO
Duplicate Ratio
Sub-Duplicate Ratio
Triplicate Ratio
Sub-Triplicate Ratio
Continued Ratio

INVERSE RATIO
•
• A inverse of ratio is the reciprocal of the given ratio.
Example: Inverse or Reciprocal of x is , like that
• Inverse Ratio of x:y is y:x i.e. Inverse of is

• The product of the ratio and their inverse ratio
is equal to 1
x:y and y:x are inverse to one another, their

product will be x = 1

EQUIVALENT RATIO
• When A and B are relative magnitudes of two quantities,
A:B is a ratio,
C and D are the another relative quantities, then
A:B = AC:BC = ACD:BCD
Example:
2 and 3 are relative magnitudes of two quantities, 2:3 is a

ratio.
4 and 5 are the another relative quantities, then
2:3 = 2x4 : 3x4 = 2x4x5 : 3x4x5 i.e. 2:3 = 8:12 = 40:60

TYPES OF COMPOUNDED RATIO
•
DUPLICATE RATIO
• When a ratio is compounded itself the resulting

ratio is called duplicate ratio.
• Example: The duplicate ratio of x : y = x2 : y2

SUB-DUPLICATE RATIO
• A ratio obtained by taking the square root of the

terms of the given ratio is called the sub-duplicate
ratio.
• Example: The sub-duplicate ratio of x:y is :

TYPES OF COMPOUNDED RATIO
•
TRIPLICATE RATIO
• When a ratio is compounded with itself three times,

then the resulting ratio is called triplicate ratio
• Example: The duplicate ratio of x : y = x3 : y3

SUB-TRIPLICATE RATIO
• A ratio obtained by taking the cube root of the

terms of the given ratio is called the sub-triplicate
ratio.
• Example: The sub-duplicate ratio of x:y is

CONTINUED RATIO
• The continued ratio is the relation between the

magnitudes of two or more ratios and is denoted by
a:b:c.
Example: The continued ratio of a:b and b:c is a:b:c
i.e. ab:bb:bc = a:b:c
The continued ratio of 2:3 and 4:10 is
2x4:3x4:3x10
• 8:12:30; 4:6:15

POINTS TO BE REMEMBER
•Reduce

the quantities to same units
Example: The ratio of 15kg : 600g can be written as
(15 x 1000)g : 600g = 15,000g : 600g = 150 : 6 = 25 : 1
When the quantity is increased by given ratio multiply

the quantity by greater ratio.
Example: To increase a quantity in the ratio of b:a, multiply

the quantity by the fraction b/a (b must be bigger number)
Increase 8 in the ratio 5:4 is,
8 x = 40 /4 = 10

•
When the quantity is decreased by given ratio
multiply the quantity by lesser ratio.
Example: To decrease a quantity in the ratio of b:a,

multiply the quantity by the fraction a/b (b must be
bigger number)
Decrease 8 in the ratio 5:4 is,
8 x = 32 /5 = 6.4

•
When both increasing and decreasing of quantities
are present in a problem multiply the quantity by
greater ratio in increase and multiply the result by
lesser ratio to obtain the final result
Example:
Increase 8 in the ratio 5:4 and Decrease 8 in the ratio

3:4 is,
8 x = 40 /4 = 10
10 x = 30 /4 = 7.5
PRACTICE PROBLEM
QUESTION:
1) The ratio of the present age of a father to that of

his son is 4:1. Fifteen years hence the ratio would be
11:5. Find their present ages.

PRACTICE PROBLEM
•
SOLUTION:
Person Present Age Age after 15 years
Father 4x 4x + 15
Son 1x 1x + 15
Ratio 4:1 11:5
=; 5(4x+15) = 11(x+15); 20x+75 = 11x+165

20x–11x = 165-75: 9x = 90; x = 10
Father’s Present Age = 4x10 = 40 years
Son’s Present Age = 1x10 = 10 years.
PRACTICE PROBLEM
QUESTION:
2) The monthly salaries of two persons are in the

ratio of 3:5. If each receives an increase of ₹. 20 in
salary, the ratio is altered to 13:21. Find the
respective salaries.

PRACTICE PROBLEM
•
SOLUTION 2) continues…
480 / 2 = 240
y = 5 x 240 / 3 = 400
The salaries of the two persons are ₹.240 and ₹.400

PRACTICE PROBLEM
•
SOLUTION:
2) Let the monthly salaries of the two persons be ₹.x

and ₹.y.
=; 5x = 3y; y = ----------- (1)
=; 21(x + 20) = 13(y + 20);
21x – 13y = -160-------------------------(2)
Substitute y = in equation (2)

PRACTICE PROBLEM
QUESTION:
3) Monthly incomes of two persons Ram and Rahim

are in the ratio 5:7 and their monthly expenditures
are in the ratio 7:11. If each of them saves ₹. 60 per
month. Find their monthly income.

PRACTICE PROBLEM
•
SOLUTION: Hint:
Entire Income spent for Expenses and Savings.

Income – Savings = Expense.
Let the monthly incomes be 5x and 7x, then
= ; 11(5x-60) = 7(7x-60); 55x-49x= -420+660
6x = 240; x = 40
The monthly income of Ram = 5x40 = ₹.200
The monthly income of Rahim = 7x40 = ₹.280

PRACTICE PROBLEM
QUESTION:
4) There has been increment in the wages of

labourers in a factory in the ratio of 22:25, but there
has also been a reduction in the number of labourers
in the ratio of 15:11. Find out in what ratio the total
wage bill of the factory would be increased or
decreased?

PRACTICE PROBLEM
SOLUTION:
Details Old : New
Wages of Labourers (a) 22 : 25
No. of Workers (b) 15 : 11

Total Wages (a x b) 330 : 275
By Simplifying the total wages, the ratio is 6:5

PRACTICE PROBLEM
QUESTION:
5) A Health Food Company decides to increase the

size of their Energy Bar in the ratio 6:5. If the old
bars has a weight of 80grams, what will be the weight
of the new bar?

PRACTICE PROBLEM
SOLUTION:
New ratio of Energy Bar is 6:5 or 6/5
Weight of the old bar is 80 grams.
When the quantity is increased by given ratio

multiply the quantity by greater ratio
80 x 6/5 = 480 / 5 = 96 grams.
The weight of the new bar is 96 grams.

PRACTICE PROBLEM
QUESTION:
6) In a disastrous year of Global Financial problems,

the value of Angelina’s Retirement Investment
Savings decreases in the Ratio of 5:7. If her savings
were worth ₹.50,000 a year ago, what is her current
money value?

PRACTICE PROBLEM
SOLUTION:
A year ago her savings is ₹.50,000
Her retirement Investment Savings decreases in 5:7
When the quantity is decreased by given ratio

multiply the quantity by lesser ratio.
50,000 x 5/7 = 2,50,000 / 7 = ₹.35,714.29
Angelina’s current money value is ₹.35,714.29

PRACTICE PROBLEM

PRACTICE PROBLEM

Stay at Home – Protect yourself and save your family members

Business Maths Ratio

Uploaded by

Copyright:

Available Formats

Business Maths Ratio

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Business Maths Ratio

Uploaded by

Copyright:

Available Formats

Greetings …!!

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

Ratio is the mathematical expression of the relationship

In a business, salesman A earned incentive of ₹.10,000

We can compare that Salesman B earns double that of

i.e. Ratio is 10,000 / 20,000 = ½ or 1 : 2.

• “The relationship or proportion that one amount

2) In which ‘A is called the first term – antecedent

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

Eg. a) 3:4 multiplied by 2, 6:8

b) 20:12 divided by 4, 5:3

2) Two or more ratios can be compared by changing them to the

Eg. a) in the ratios 2:5 and 4:15 which is greater?

2/5 and 4/15 6/15 and 4/15 Greater one is 2/5

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

Example: Inverse or Reciprocal of x is , like that

• Inverse Ratio of x:y is y:x i.e. Inverse of is

x:y and y:x are inverse to one another, their

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

C and D are the another relative quantities, then

A:B = AC:BC = ACD:BCD

2 and 3 are relative magnitudes of two quantities, 2:3 is a

4 and 5 are the another relative quantities, then

2:3 = 2x4 : 3x4 = 2x4x5 : 3x4x5 i.e. 2:3 = 8:12 = 40:60

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

• When a ratio is compounded itself the resulting

• Example: The duplicate ratio of x : y = x2 : y2

• A ratio obtained by taking the square root of the

• Example: The sub-duplicate ratio of x:y is :

• When a ratio is compounded with itself three times,

• Example: The duplicate ratio of x : y = x3 : y3

• A ratio obtained by taking the cube root of the

• Example: The sub-duplicate ratio of x:y is

• The continued ratio is the relation between the

Example: The continued ratio of a:b and b:c is a:b:c

i.e. ab:bb:bc = a:b:c

The continued ratio of 2:3 and 4:10 is

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

Example: The ratio of 15kg : 600g can be written as

(15 x 1000)g : 600g = 15,000g : 600g = 150 : 6 = 25 : 1

When the quantity is increased by given ratio multiply

Example: To increase a quantity in the ratio of b:a, multiply

Increase 8 in the ratio 5:4 is,

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

Example: To decrease a quantity in the ratio of b:a,

Decrease 8 in the ratio 5:4 is,

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

Increase 8 in the ratio 5:4 and Decrease 8 in the ratio

1) The ratio of the present age of a father to that of

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

Ratio 4:1 11:5

=; 5(4x+15) = 11(x+15); 20x+75 = 11x+165

2) The monthly salaries of two persons are in the

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

The salaries of the two persons are ₹.240 and ₹.400

Dr. L. Eswaran, Assistant Professor of Commerce, Thiagrajar College, Madurai 625009

2) Let the monthly salaries of the two persons be ₹.x

=; 5x = 3y; y = ----------- (1)