Question

The average salary of 100 employees in an office is Rs. 16000 per month. The management decided to raise salary of every
employee by 5 % but stooped a transport allowance of Rs. 800 per month which was paid earlier to every employee. What will be the new average monthly salary?
a. Rs. 16000
b. Rs. 16500
c. Rs. 16800
d. Cannot be known since data are insufficient

Answer 1

The 5% of 16000 = 800
So new salary = 16800
If 800Rs has stopped
So total salary = 16800-800
=16000
So ans is 16000Rs

Answer 2

The new average monthly salary will be option (a). Rs. 16000

Explanation :

Given that the previous salary was 16000

Now the company raise the salary by 5%

=> Raise in salary = 5% of 16000

= 0.05 x 16000

= Rs 800

Hence new salary after raise = 16000 + 800 = 16800

But the company stopped the transport allowance of Rs 800

=> New Salary = 16800 - 800 = 16000

Hence the new average monthly salary will be option (a). Rs. 16000