A's salary is 40% more than B's. If B's salary increases by 20% and A's increases by x%, then A's new salary becomes 25% more than B's new salary. What is the value of x?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 7.14%.
Let B’s salary = 100. Then A’s salary = 140 (40% more)
B’s new salary = 100 × 1.20 = 120
A’s new salary = 120 × 1.25 = 150
So 140(1 + x/100) = 150
⇒ 1 + x/100 = 150/140 = 15/14
⇒ x/100 = 1/14
⇒ x = 100/14 ≈ 7.14%