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A’s salary increased by 12% over last year and has become ₹6720. What will be his next year’s salary if it increases by 20% over last year’s salary?
  • a)
    ₹8000
  • b)
    ₹8064
  • c)
    ₹7500
  • d)
    ₹7200
Correct answer is option 'D'. Can you explain this answer?
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A’s salary increased by 12% over last year and has become ₹6720. What...
Last year’s salary
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A’s salary increased by 12% over last year and has become ₹6720. What...
Problem:
A’s salary increased by 12% over last year and has become ₹6720. What will be his next year’s salary if it increases by 20% over last year’s salary?

Solution:
To find out A's next year's salary, we need to determine his current salary first. We can do this by using the information given in the problem.

Step 1: Calculate A's current salary
A's current salary is given as ₹6720, which represents a 12% increase over last year's salary. Let's denote A's last year's salary as 'x'.

So, we can write the equation as:
x + 12% of x = ₹6720

Simplifying the equation, we get:
x + 0.12x = ₹6720
1.12x = ₹6720
x = ₹6720 / 1.12
x = ₹6000

Hence, A's last year's salary was ₹6000.

Step 2: Calculate A's next year's salary
Now that we know A's current salary, we can calculate his next year's salary by increasing it by 20%.

Let's denote A's next year's salary as 'y'. We can write the equation as:
y = ₹6000 + 20% of ₹6000

Simplifying the equation, we get:
y = ₹6000 + 0.20(₹6000)
y = ₹6000 + ₹1200
y = ₹7200

Hence, A's next year's salary will be ₹7200.

Therefore, the correct answer is option 'D', ₹7200.
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