Question

Salary of an officer increases every year by $20\%$. His salary in the year $2001$ was Rs. $26640$. What was his salary in $1999$?

• A. Rs. $20,000$
• B. Rs. $19,028$
• C. Rs. $18,500$
• D. Rs. $19528$

Answer 1

The correct option is C Rs. $18,500$

Let the Salary of an officer $=x$ in $1999$

In $2000$, his salary increased by $20\%$

His salary is $120\%$ $of$ $x=y$ let say

In $2001$, Salary $=$ Rs. $26640$

His salary increased by $20\%$ from previous year salary

Now his salary is $120\%$ $\text{of}$ $y$.

Substituting value of $y$, we get

$\Rightarrow 120\%of(120\%$ $of$ $x)$

$\Rightarrow \frac{120}{100}\times \frac{120}{100}\times x=26640$

$\Rightarrow 1.44\times x=26640$

$\Rightarrow x=$ Rs. $\frac{26640}{1.44}=$ Rs. $18,500$