Question

Chirashree got a pay hike and her salary increased by 25%. Due to the salary increment she increased her savings which is only Rs. 5000 less than her expenditure now. If her present expenditure is Rs. 20000, what was her salary before the pay hike?

1. Rs. 35000
2. Rs. 20000
3. Rs. 28000
4. Rs. 32000
5. Rs. 30000

Answer 1

Correct Answer - Option 3 : Rs. 28000

Given:

Salary of Chirashree increased by 25%

Present expenditure is Rs. 20000

Present savings is Rs. 5000 less than expenditure

Concept:

Total income (salary) is sum of savings and expenditure

Formula:

Old salary = New salary × 100/(100 + x)

Where x = increment percent

Calculation:

Present savings = Rs. (20000 – 5000) = Rs. 15000

Present salary = Rs. (15000 + 20000) = Rs. 35000

Previous salary = 35000 × 100/125 = Rs. 28000

∴ Previous salary of Chirashree was Rs. 28000