Question 56

The salary of Amit is 75% of the salary of Aman. The salary of Amit increases by 40% and the salary of Aman increases by 10%. By what approximate percentage is the new salary of Aman more than the new salary of Amit?

Solution

The salary of Amit is 75% of the salary of Aman.

Let's assume the initial salary of Aman is 4y.

initial salary of Amit = 75% of 4y

 = $$\frac{75}{100}\times4y$$

= $$\frac{3}{4}\times4y$$

= 3y

The salary of Amit increases by 40% and the salary of Aman increases by 10%.

salary of Amit after increase = 3y of (100+40)%

= 3y of 140%

= $$3y\times\ \frac{140}{100}$$

= 4.2y    Eq.(i)

salary of Aman after increase = 4y of (100+10)%

= 4y of 110%

= $$4y\times\ \frac{110}{100}$$

= 4.4y    Eq.(ii)

percentage more = $$\frac{\left(Eq.(ii)-Eq.(i)\right)\times\ 100}{Eq.(i)}$$

= $$\frac{\left(4.4y-4.2y\right)\times\ 100}{4.2y}$$

= $$\frac{0.2y\times\ 100}{4.2y}$$
= $$\frac{2\times\ 100}{42}$$
= $$\frac{100}{21}$$
= 4.8% approx.

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