After two successive increments, a person's salary became 156.25% of the original salary. If the percentage increase in the second increment was equal to that in the first increment, then what was the percentage of each increment?
Show answer & explanation
Correct answer: C
Explanation
Given:
Final pay = 156.25% of basic pay
Both pay increases are of the same percentage
By formula:
New amount = P(1 + r/100)²
156.25% = 1.5625
(1 + r/100)² = 1.5625
√1.5625 = 1 + r/100
1.25 = 1 + r/100
r/100 = 0.25
r = 25%