The average monthly salary of employees in a company is ₹40,000. When 4 new employees with average salary ₹25,000 join, the average salary of the whole company decreases by ₹3,000. Find the original number of employees.
Show answer & explanation
Correct answer: A
Explanation
Given:
Initial average salary = ₹40,000
Average salary of new employees = ₹25,000
New employees = 4
New average salary = ₹37,000
Let the original number of employees = x
Initial total salary = 40,000x
Total salary of new employees = 25,000 × 4 = 100,000
New total salary = 40,000x + 100,000
Total employees = x + 4
New average
(40,000x + 100,000) / (x + 4) = 37,000
40,000x + 100,000 = 37,000x + 148,000
40,000x − 37,000x = 148,000 − 100,000
3000x = 48000
x = 16