The average salary of employees in a company is ₹20,000. If a new employee with a salary of ₹50,000 joins, the average increases by ₹500. Find the number of employees originally in the company.
Show answer & explanation
Correct answer: A
Explanation
Given:
Initial average salary = ₹20,000
New average salary = ₹20,500
Salary of the new employee = ₹50,000
Formula:
Total salary = Average × Number of employees
Let the number of employees = x
Initial total salary = 20,000x
After the new employee
Total salary = 20,000x + 50,000
Employees = x + 1
New average
(20,000x + 50,000) / (x + 1) = 20,500
20,000x + 50,000 = 20,500x + 20,500
50,000 − 20,500 = 20,500x − 20,000x
29,500 = 500x
x = 59
Original number of employees = 59