Question Details

Salary of a person decreases by 10% every year and his bonus increases by 24% every year. If his salary and bonuses at the end of 2020 were ₹8000 and ₹2500 respectively, find the difference between his total earning in March, 2020 and March 2022.

Options

A

₹ 165, increase

B

₹ 176, increase

C

₹ 180, decrease

D

₹ 176, decrease

Correct Answer :

₹ 176, decrease

Solution :

The correct option is ₹ 176, decrease.

Step-by-step Explanation:

1. Earning in March 2020:
At the end of the year 2020, the person's salary and bonus rates were ₹8000 and ₹2500 respectively. These rates apply to the year 2020, including March 2020.
Total earning in March 2020 = Salary + Bonus
Total earning in March 2020 = ₹8000 + ₹2500 = ₹10500

2. Calculating Salary and Bonus for 2021:
The salary decreases by 10% every year:
Salary in 2021 = Salary in 2020 - 10% of Salary in 2020
Salary in 2021 = 8000 - 0.10 * 8000 = 8000 - 800 = ₹7200

The bonus increases by 24% every year:
Bonus in 2021 = Bonus in 2020 + 24% of Bonus in 2020
Bonus in 2021 = 2500 + 0.24 * 2500 = 2500 + 600 = ₹3100

3. Calculating Salary and Bonus for 2022:
Salary in 2022 = Salary in 2021 - 10% of Salary in 2021
Salary in 2022 = 7200 - 0.10 * 7200 = 7200 - 720 = ₹6480

Bonus in 2022 = Bonus in 2021 + 24% of Bonus in 2021
Bonus in 2022 = 3100 + 0.24 * 3100 = 3100 + 744 = ₹3844

4. Earning in March 2022:
Total earning in March 2022 = Salary in 2022 + Bonus in 2022
Total earning in March 2022 = ₹6480 + ₹3844 = ₹10324

5. Difference and Change:
Difference in earning = Earning in March 2020 - Earning in March 2022
Difference = 10500 - 10324 = ₹176

Since the total earning in March 2022 (₹10324) is less than the total earning in March 2020 (₹10500), it represents a decrease of ₹176.

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