Question

Prices register an increase of $10\%$ on food grains and $15\%$ on other items of expenditure. If the ratio of an employees expenditure on food grains and other items be $2:5$, by how much should his salary be increased in order that he may maintain the same level of consumption as before his present salary being Rs. $2590$

• A. Rs. $323.75$
• B. Rs. $350$
• C. Rs. $360.50$
• D. Rs. $351.50$

Answer 1

The correct option is D Rs. $351.50$

Given that the expenses on food : other items $=2:5$.

His salary $=$ Rs. $2590$.

$\therefore$ expenses on food $=$ Rs. $\frac{2}{5+2}\times 2590=$ Rs. $740$ and

the expenses on other items $=$ Rs. $(2590-740)=$ Rs. $1850$.

Now the rise in price for rice at $10\%=$ Rs. $740\times \frac{10}{100}=$ Rs. $74$ and

the rise in price for other items at $15\%=$ Rs. $1850\times \frac{15}{100}=$ Rs. $\mathrm{277.5.}$

$\therefore$ the net rise in expenses $=$ Rs. $(74+277.5)=$ Rs. $351.5$.

$\therefore$ his salary should be increased by Rs. $351.5$ to cope with the present situation.