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Q78 (IAS/2007) Economy › Basic Concepts & National Income › Percentages and profit-loss Answer Verified

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?

Result
Your answer: —  Â·  Correct: A
Explanation

Initial average = Rs 16,000. A 5% raise on Rs 16,000 equals Rs 800, so the post‑raise salary becomes Rs 16,800. Since the transport allowance of Rs 800 per employee is then removed, the net change per employee is +800 − 800 = 0, leaving the average unchanged at Rs 16,000. This calculation and conclusion are the same as shown in the provided solution .

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