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

Answer: (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 $=1.25\times$ Reduced wage per employee $=$ Rs. $0.75y$
$\therefore$ Total wages $=1.25x\times$ Rs. $0.75y=0.9375xy$.

$\therefore$ Required $\%$ decrease $=\frac{xy-0.9375xy}{xy}\times 100$

$=0.0625\times 100$

$=6.25$

$=\frac{25}{4}\%$