Question

The number of employees working in a farm is increased by 25% and the wages per head are decreased by 25%. If it results in x% decrease in total wages, then the value of x is 

(a) 0 

(b) 25 

(c) 20

(d) \(\frac{25}{4}\)

Answer 1

(d) \(\frac{25}{4}\)

Let the number of workers = x, wage per employee = Rs y

Then, total wages = Rs xy

Number of workers after increase = 1.25x

Reduced wage per employee = Rs 0.75y

\(\therefore\) Total wages = 1.25x × Rs 0.75y = 0.9375xy

\(\therefore\) Required % decrease = \(\frac{Xy-0.9375Xy}{Xy}\) x 100

= 0.0625 x 100 = 6.25

= \(\frac{25}{4}\)%