Question : Three years ago, Raman’s salary was INR 45,000. His salary is increased by 10 percent, A percent and 20 percent in the first, second and third year respectively. Raman's present salary is INR 83,160. What is the value of A?
Option 1: 50
Option 2: 30
Option 3: 54
Option 4: 40
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Correct Answer: 40
Solution : Given: Three years ago, Raman’s salary was INR 45,000. According to the question, 45000 × (100 + 10)% × (100 + A)% × (100 + 20)% = 83160 ⇒ 45000 × $\frac{11}{10}$ × (100 + A)% × $\frac{6}{5}$ = 83160 ⇒ (100 + A)% = $\frac{7}{5}$ ⇒ 5(100 + A) = 7 × 100 ⇒ 500 + 5A = 700 ⇒ 5A = 700 – 500 ⇒ 5A = 200 ⇒ A = 40 Hence, the correct answer is 40.
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