The average salary of 100 employees in an office is Rs. 16,000 per month. The management decided to raise sala

Question

The average salary of 100 employees in an office is Rs. 16,000 per month. The management decided to raise salary of every employee by 5% but stopped a transport allowance of Rs. 800 per month which was paid earlier to every employee. What will be the new average monthly salary?

Accepted Answer

To find the new average salary, we can apply the changes directly to the existing average because the same changes apply to every single employee.

First, calculate the 5 percent raise on the original average salary. 5 percent of 16,000 is 800. After this raise, the average salary becomes 16,000 plus 800, which equals 16,800.

Second, the management stops the transport allowance of 800 for every employee. Since everyone loses exactly 800, the new average decreases by 800. Subtracting 800 from 16,800 brings the average back to 16,000.

Therefore, the new average monthly salary remains 16,000. Option A is correct.

Answer

Rs.16,000

Answer

Rs. 16,500

Answer

Rs. 16,800

Answer

Cannot be known since data are insufficient

The average salary of 100 employees in an office is Rs. 16,000 per month. The management decided to raise salary of every employee by 5% but stopped a transport allowance of Rs. 800 per month which was paid earlier to every employee. What will be the new average monthly salary?

Explanation

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