Answer:
a. Public savings = $1.05 billion
b. Private savings = $3.15 billion
Explanation:
Given that
Total savings, S = $4.20 billion
And
S = V+U
National Savings = Private savings + Public savings
where,
V = private savings
U = public savings
And
Private saving, V = 0.75 × S
= 0.75 × $4.20 billion
= $3.15 billion
And, the public saving would be
= National savings - private savings
= $4.20 billion - $3.15 billion
= $1.05 billion
Savings is that part of income which is left after making all the payments and managing expenses from the income. Similarly, national savings are the total savings of a nation after all the payments and expenses.
Given
Total national savings are $4.20 billion
Private savings are 75%
National savings is a sum total of public and private savings
Here,
Public savings is represented by U,
Private savings is represented by V, and
National savings is represented by S
[tex]\begin{aligned}\rm (b) \: Private\: savings &= National\:savings \times \dfrac{75}{100} \\\\\rm \: Private\: savings &= \$ 4.20 \times (\dfrac{75}{100})\\\\\rm \: Private\: savings &=\$ 4.20 \times 0.75\\\\\rm \: Private\: savings &=\$ 3.15 \:billion \end[/tex]
Therefore private savings is $3.15 billion.
(a) Similarly, public savings is a difference of national savings and Private savings.
[tex]\begin{aligned}\rm Public\: savings &= \rm National \:savings - Private\: savings \\\rm U &=\rm S-V\\\rm U&= \$4.20- \$3.15 \\\rm U &=\rm \$ 1.05 \:billion \end[/tex]
Therefore , (a) public savings are U = $1.05 billion and (b) private savings are V = $3.15 billion.
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